Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Fiat concerns about high operating costs and significantly low productivity at Italian plants leading to a threat to move its production outside of Italy. This issue is exacerbated by the fact that Italian government pays Fiat workers their salary during their unemployment.Fiat says that without union concessions it may shift production abroad, where wages are as much as 70 percent lower. But as Italy gets sucked ever deeper into the debt crisis engulfing the whole euro zone and Fiat suffers an Italian market at its lowest ebb in 15 years, a revamped Chrysler is now the main source of revenues and profits for the combined group. Mr. Marchionne blames low productivity, high labour costs and rigid work contracts for the group’s losses on its home turf, and has engaged in a tug-of-war with unions and Italy’s industrial elite to overhaul labour agreements.

The 22,000 employees in Fiat’s five main Italian car factories produce 650,000 cars a year, compared with the 600,000 that are rolled out at Fiat’s single Polish plant, which employs just 6,000 people.

Last month, Fiat said it would scrap industry-wide national labour contracts to replace them with deals at the plant level setting tougher rules for working hours, sick pay and strikes — a move that labour experts say marks a turning point in Italy’s industrial relations.

At the end of July, Italy's Prime Minister Enrico Letta slammed Europe for the handling of Greece's near-quarter of a trillion euro rescue package by saying that the bloc made some 'serious mistakes'.

"There is no doubt that serious mistakes were made about Greece by Europe in the past few years," said Letta.

"The timing was wrong. The instruments were wrong. The interventions were not made in the right way and at the right time and this worsened the crisis.

"The crisis would have been different. It would have created less of a financial disaster; it would have led to fewer job losses across Europe, if Europe's attitude to Greece had been different at the beginning."

answer:

1. How is this also an issue for American auto makers?

2. How does this issue relate to news regarding Greece's economic problems in EU context?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92489678

Have any Question?


Related Questions in Operation Management

1 although the speed and weight of a vehicle both affect

1. Although the speed and weight of a vehicle both affect force of impact, they do not have exactly the same effect. What is the difference? 2. What is the major misconception about the term right-of–way? 3. What is the ...

One of the takeaways from porters five forces model is that

One of the takeaways from Porter's five forces model is that the profitability of a particular company is more dependent on the structural characteristics of the industry in which it is embedded than on the internal capa ...

1 what you understand from motivation and contingency

1. What you understand from Motivation and Contingency Theories with proper explanation and with proper reference. 2. Give some examples on how one's philosophy or beliefs about leadership fit with the competing values m ...

Jcpenney has recognized numerous opportunities to expand in

JCPenney has recognized numerous opportunities to expand in foreign countries and has assessed many foreign markets, including Brazil, Greece, Mexico, Portugal, Singapore, and Thailand. It has opened new stores in Europe ...

1 what did you found more interesting about the

1. What did you found more interesting about the introduction to marketing course? 2. Inventory management and just in time/lean operation are part of the same strategy. Please explain. 3. Explain the fundamental concept ...

Managing fixed and variable costs for organizationmicrosoft

Managing Fixed and Variable Costs for Organization Microsoft and Walmart Purpose of Assignment In this week, students are learning about managing different types of economic costs. Organizations typically have either hig ...

1 when and why might you choose to weight the selection

1. When and why might you choose to weight the selection criteria for solutions? Provide an example. 2. DISCUSS why it is important for social media managers to track ad campaigns and generate insights based on data. You ...

Directions for this assignment review an audio recording of

Directions: For this assignment, review an audio recording of Dr. Martin Luther King, Jr.’s “I Have a Dream" speech from 1963. After listening to (or reading) the speech, compete the following: • Determine at least two d ...

A retailer needs to find out the best order size for the

A retailer needs to find out the best order size for the coming season. The retail price is $12 per unit of sold product. The ordering cost for each unit is $4. The savage value of each unsold product is $2. The retailer ...

1 what are the main points of barnes and noble history and

1. What are the main points of Barnes and Noble history and beginnings? 2. Some methods of initial assessment appear to be more useful than others. If you were starting your own business, which three initial assessment m ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As