Fiat’s Italian auto productivity vs Poland’s auto workers

A Bloombergbusinessweek article (Oct 31-Nov 6,2011, pg 30) describes Fiat’s Italian workers producing 30 cars per year per worker, earning 3 times their Polish counterparts and operating at 33 % of capacity. In contrast, Polish workers produce 100 cars per year per worker, operate at over 73 % capacity and earn 1/3 the Italian labor.  Gievn such producitivity disparities, it takes 22,000 Italian factory workers to produce 650,000 cars while Fait’s 6,100 Polish workers produce 600,000 cars. Do you sympathize with plans by Fiat to cut its manufacturing in Italy ? Should Fiat continue to produce in Italy despite a sales drop to a 30 year low or optimize its supply-demand equation to maximize profits ? Is Fiat a crucial symbol of Italian manufacturing that should remain as part of its role in establishing confidence in the Italian economy ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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