Recently published research from Business Monitor International, "Italy Autos Report Q2 2012", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 06/06/2012 -- BMI believes that the collective labour agreement signed between Fiat and its 86,000 Italian work force in December 2011 - calling for increased shifts and shorter breaks in exchange for a EUR20bn investment at its Italian facilities - addresses only one of the issues confronting Fiat's Italian operations. Hurt by its poor model line-up and consequent decline in popularity, as well as high production costs, Fiat posted a 12% decline in European sales and a drop of nearly 20% in Italy, where a poor economic backdrop contributed to a 10.9% contraction in the country's overall new vehicle market.
View Full Report Details and Table of Contents
Indeed, the drop in sales is a sign of a widespread weakening in the consumer and investment spending, which will take a hit from the hefty tax increases introduced by Prime Minister Mario Monti with his 'Save-Italy' decree, combined with a drop in exports as the eurozone approaches recession territory and confidence collapses. In view of these conditions, BMI forecasts total vehicle sales to fall nearly 6% year-on-year (y-o-y), to 1.88mn units in 2012, which will dampen any prospects of Fiat's vehicle growth during the year. In turn, this will mean that domestic production will fall for the fifth consecutive year in 2012, down 0.9% following a 5.7% y-o-y, decline in 2011. The all-round pessimism has resulted in Italy being ranked at the ninth position in our Risk/Reward ratings for the autos industry in Europe.
However, there is hope for a significant change in the overall operating environment in Italy, thanks to three major decrees - dubbed 'Save Italy', 'Grow Italy' and 'Free Italy - passed by the government under Monti and aimed at tackling issues such as tax evasion, a large grey economy, byzantine bureaucracy, faltering productivity and lack of competition. Although the measures taken go in the right direction, it will take them several months, if not years, to have a positive impact on economic growth. As such, we see little prospects for any improvement in Italy's position in our ratings system in the short to medium term.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Transportation research reports at Fast Market Research
You may also be interested in these related reports:
- Argentina Autos Report Q2 2012
- Germany Autos Report Q2 2012
- India Autos Report Q2 2012
- China Autos Report Q2 2012
- Vietnam Autos Report Q2 2012
- Mexico Autos Report Q2 2012
- Algeria Autos Report Q2 2012
- Japan Autos Report Q2 2012
- Venezuela Autos Report Q2 2012
- Russia Autos Report Q2 2012