Internationalization Process Of Fiat : Project 178

1.Abstract

In this paper, i tried explain the main aspects of  internationalization process of automobile company "Fiat".As u will see in the following pages,Fiat that its establishment dates back to beginning of 1900s was trying to internationalize for taking place in the globalizing world.They named this process as Project 178
As a large company with a small domestic market, Fiat Auto has always been faced with the issue of internationalization, which can be considered an evolutionary process that has unfolded throughout the last century, and influences the current globalization strategy. This began in 1993 when Fiat Auto took a decisive step towards creating a global organization by setting up Project 178, whose main features are:
1. Define a family of new models, based on the same platform, to be produced and sold with basically no significant change, in a number of countries.
2. Create a worldwide supply chain to manufacture, in different places of the world, a family of new models suited to the motorization needs of BEMs(bigemerging market).
3. Take advantage of cost differentials, namely labor cost differentials, available in PLEMAs(peripheral of large existing market areas).
4. Guarantee absolute standardization of each version of the models produced, even if they are targeted to different markets.
5. Establish an organizational learning process capable of conciliating the design of a centralized product with the needs of various final markets.
6. Diffuse, by replication and adaptation to foreign plants, the lesson learned in the setting up and operation of the highly successful green-field plant in Melfi (Italy).
7. Develop a global supply chain, flexibly and efficiently using the production capacity and the supplier base ava ...
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