If you were to ask a typical person about the auto industry, they would likely talk about Detroit and the car companies that led manufacturing for decades of Ford, GM and Chrysler. For a long time, the center of autos was Detroit. However, other countries have their versions because autos are made around the world. One city is Turin, Italy.

In an article by Eric Reguly of the Globe and Mail, Fiat’s Mirafiori factory in Turin, Italy produced over 30 million vehicles turning Fiat into a global brand.

In its heyday, the plant made over 1 million vehicles a year, and had 60,000 employees. They worked in a city within a city, think of the Rouge plant of Ford. Today, the plant employs 10,000 people.

Not so many decades ago, Mirafiori represented the industrial might and engineering savvy of Italy, which is the 2nd largest manufacturing power of Europe. The site covers 500 acres and all the features of automobile design, manufacturing operations and testing the new cars.

In 2004, then Fiat President took over a nearly bankrupt Fiat and reduced the number of platforms of vehicles from 19 to 6 by 2012. Car development times were cut in half. New models were rolled out and market share rose to 33%. Fiat was ambitious and profitable bought Chrysler.

A few years later, Fiat Chrysler merged with PSA Group of France which made the Peugeot. The parent company changed its name to Stellantis.

The company made money in the pandemic and stock prices increased. Now things are much tougher as market share has fallen in the US from 14% to 8%. What will the company do?

Linking to dividend paying stocks, for a long time Fiat was the powerhouse in Italy and all was good for everyone. Then sales fell, the company was restructured, did well and is not doing as well. For every company, you can be a fan or believer in the products but as an investor profits matter. When profits are low, as much as you like the company ensure you are viewing alternatives.

There are more questions than answers, till the next time – to raising questions.