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Giancarlo Boschetti was named managing director of troubled Fiat Auto S.pA last December. Boschetti, 63, moved from the Fiat group's Iveco heavy-truck subsidiary, where he led a turnaround in the 1990s. His first restructuring plan, announced in early May, had to be revised in October as Fiat Auto sales decreased much faster than expected, taking the company to substantially higher operating losses.
Boschetti's revised restructuring plan calls for the company to invest over 10 percent of annual revenue $2.6 billion a year from 2003 to 2005 - to launch 20 new models across the Fiat, Lancia and Alfa Romeo brands. His plan also will see investments of $150 million a year to strengthen the European dealer network and revise the sales channel mix.
"We have a clear, honest and comprehensive business plan, and we are fully committed to it and determined to see it through," Boschetti said
Staff Reporter Luca Ciferri interviewed him on Nov. 5 in Turin, Italy.
It is avery hard time to run Fiat Auto. What is your main concern these days?
There are too many rumors, too much gossip and too many Byzantine interpretations around Fiat Auto. I know that my team is as determined as I am in pursuing our program to its successful conclusion. We are all convinced that we can do it. At the same time, though, we deal with so many partners - our work force, our suppliers and our dealers. They, too, are disturbed by all the interest swirling around Fiat. I want to convey to all of them a simple, clear message: Our industrial plan is tailored to ferry our company into calm waters. I must convince our people and our partners that we will return to good health.
In January, Fiat Auto was divided into five autonomous business units Fiat/Lancia/Light Commercial Vehicles, Alfa Romeo, International Developments, Consumer Services, and Aftersales - each responsible for its own finances. Which of them is making money?
The consolidated results will be announced for the whole of Fiat Auto, rather than for each separate business unit. I can, however, tell you that Light Commercial Vehicles, Aftersales and Consumer Services are showing good...