Fiat acquired the shattered remnants of Lancia in 1969. The Italian car giant was ill-prepared for what it discovered.
Fiat made its name, reputation and not inconsiderable fortune from small cars, cost-engineered and rationalised to be inexpensive to produce, to buy and to maintain. During Italy’s post-war industrial boom, the Turin car maker grew massively, catering to the home market’s growing affluence and thirst for motorisation. By the late 1960’s however, Fiat’s management realised that over 70% of their car business was concentrated in the bottom end of the market – one with the least potential for profit. Continue reading “Gamma: Signs and Portents – Part Two”