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Surviving the Fall of a King: The Regional Institutional Implications of Crisis at Fiat Auto

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  • JOSH WHITFORD
  • ALDO ENRIETTI

Abstract

This article discusses developments in the famously automotive‐centered productive system in Turin and the surrounding Piedmont region in the wake of major crisis at Fiat Auto. This large, articulated and internationally competitive productive system emerged from interactions between Fiat, its suppliers and other regional actors, but has always had Fiat at its center in a directive role, as the sole actor with both the interest and the ability to provide key collective goods. The automaker is today dramatically weakened, leaving the Piedmont region with an essential and unanswered question: what will happen to the networks of relationships and diversity of productive services if Fiat Auto does — as seems likely — cease to play its historic ‘monarchical’ role? To answer this question, we draw on literatures in comparative political economy, economic sociology and institutionalist economic geography concerned with path dependency and the decentralized coordination of production to trace the territorially embedded development of the Piedmontese automotive components industry as it has been constructed through Fiat's contradictory interaction with the productive hinterland. In so doing, we identify possible futures for the region and discuss the feasibility of constructing new associational coordinating institutions. Cet article traite des évolutions du système productif de Turin et de la région environnante du Piémont centré, comme chacun sait, sur l’automobile, alors que Fiat Auto a subi une crise majeure. Ce système productif, vaste, articulé et compétitif au plan international, est né d’interactions entre Fiat, ses fournisseurs et d’autres acteurs régionaux, Fiat assurant toujours un rôle directif, acteur unique ayant à la fois intérêt et aptitude à fournir des biens collectifs essentiels. Le fabricant automobile, aujourd’hui très affaibli, laisse la région piémontaise sans réponse face à une question vitale: qu’adviendra‐t‐il des réseaux relationnels et de la diversité des services à la production si Fiat Auto cesse — cela paraît probable — de jouer son rôle historique ‘monarchique’? Pour répondre, l’article part de textes d’économie politique comparative, de sociologie économique et de géographie économique institutionnaliste traitant de la dépendance de chemin et de la coordination décentralisée d’une production, et retrace l’évolution, inscrite dans le territoire, de l’industrie des composants automobiles piémontaise, puisque celle‐ci est bâtie sur l’interaction contradictoire de Fiat avec l’arrière‐pays productif. Ce faisant, on peut déterminer des avenirs potentiels pour la région et aborder la faisabilité de l’élaboration de nouvelles institutions coordinatrices associatives.

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  • Josh Whitford & Aldo Enrietti, 2005. "Surviving the Fall of a King: The Regional Institutional Implications of Crisis at Fiat Auto," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(4), pages 771-795, December.
  • Handle: RePEc:bla:ijurrs:v:29:y:2005:i:4:p:771-795
    DOI: 10.1111/j.1468-2427.2005.00621.x
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    2. Daniele Ietri, 2010. "A City Loses its Major Industry – What Does it Do? The Case of Turin," Chapters, in: Peter Karl Kresl (ed.), Economic Strategies for Mature Industrial Economies, chapter 8, Edward Elgar Publishing.
    3. Alessandra Colombelli & Emilio Paolucci & Elisa Ughetto, 2019. "Hierarchical and relational governance and the life cycle of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 52(2), pages 505-521, February.
    4. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Vincent FRIGANT, 2011. "Egyptian pyramid or Aztec pyramid: How should we describe the industrial architecture of automotive supply chains in Europe?," Cahiers du GREThA (2007-2019) 2011-27, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Patrucco, Pier Paolo, 2013. "The Evolution of Knowledge Organization: The Emergence of Innovation Platform in the Turin Car System," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201315, University of Turin.
    7. Seyoum, Belay & Lian, Yunshan, 2018. "Market performance implications of modularization: Evidence from global auto firms operating in China," International Business Review, Elsevier, vol. 27(4), pages 852-866.
    8. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    9. Frigant, Vincent & Zumpe, Martin, 2014. "Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," MPRA Paper 55727, University Library of Munich, Germany.
    10. Patrucco, Pier Paolo, 2008. "Complexity and Organizational Change in the Coordination of Technological Knowledge: Evidence from the Automobile Cluster in Turin," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200808, University of Turin.
    11. Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    12. Alessandra Colombelli & Antonio De Marco & Emilio Paolucci & Riccardo Ricci & Giuseppe Scellato, 2021. "University technology transfer and the evolution of regional specialization: the case of Turin," The Journal of Technology Transfer, Springer, vol. 46(4), pages 933-960, August.
    13. Calabrese, Matteo & Van Leeuwen, Bas, 2023. "Socio-economic characteristics as determinants in the job market: The case of Piedmont in Italy (1867–2005)," MPRA Paper 119299, University Library of Munich, Germany.

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