Fiamm S.p.a

Fiamm restoring case study

1. FIAMM s.p.a. MATEA GOTTWALD 858507 ARIANNA FANZUTTI 859293 GIULIA BARZON 841460 MARTINA COCCOLO 859330 MATTHIAS CECHET 857482 LIVIO INCONTRO 861020 INTERNATIONAL MANAGEMENT Prof. MICELLI STEFANO

2. COMPANY PROFILE FIAMM Group born from the Italian passion of the Dolcetta family characterized by integrity , quality , respect for people and the environment T he FIAMM Group has factories and offices all over the world Experience, inventiveness , passion, talent, precision and ability to comply with the client’s requirements are the strengths of its highly qualified human resources. M ulticultural environment, but closely linked to the territory

3. VALUES PROXIMITY INNOVATION SUSTANABILITY GLOBAL PRESENCE Close to customers throughout the world I nnovative energy that's capable of responding to the changes in the market S ustainable development of the planet Achieving production and commercial objectives worldwide The goal is to meet and anticipate the market's demand for clean energy, security and communications in a suitable fashion.    

4. Ability, quality and loyalty to their costumers Major supplier for some of the world’s leading car manufacturers such as GM, M ercedes Benz, Peugeot-Citroen, Renault, Ferrari, Maserati, Jaguar, Nissan and Toyota Safe and environment friendly batteries production Global distribution and commercial network A world leader in the market of acoustic signals, with a significant position in batteries, antennas and OLED technology field . MADE IN ITALY " Your world, our energy "

5. OFFSHORING Offshoring  is the relocation of a business process  from one country to another—usually an operational process: manufacturing, or a supporting processes: accounting . Fiamm created important production centres in India and in Czech Republic: INDIA : in 2004 Fiamm established its presence in India with the production of horns for cars, this caused the closing of the factory in France ( Clacson ). CZECH REPUBLIC : in 1998 and then in 2005 Fiamm bought plants and transferred the majority of the production of batteries. About 700 employers were hired to speed up production.

6. REASONS FOR OFFSHORING Transfer the production to low-wage countries (for example, if 100 is the cost of labour in Italy, in the Czech Republic falls to 25 and in India under 5) Cut production costs Gain access to worldwide capabilities Overcome the economic crisis BUT… These decisions were not in line with the union agreement signed for the maintenance of productions in Vicenza . The company relocated in China and the Czech Republic the production located in factories of Almisano and Montecchio Maggiore(province of Vicenza), resulting in the loss of about 440 job positions.

7. RESHORING Definition: Company currently basing some or all of their manufacturing overseas relocates that manufacturing to the home country. In 2012 Fiamm decided to reallocate its production in Italy. The factories chosen are: Montecchio Maggiore (Vicenza ), the same that was closed 4 years before by the company The improvement for an existing factory in Abruzzo province.

8. REASONS FOR RESHORING Fiamm found several inefficiencies in the factory located in Czech Republic with respect to the counterpart in I taly: Low production compared to the Italian factories I ndustrial waste during the production High employees turn-over Inferior quality of workmanship In order to avoid this problems the company chose a new strategic plan!

9. NEW STRATEGIC PLAN IN ITALY: Reallocation of the production and the R&D department Higher levels of R& D Premium price for Italian quality Proximity to companies’ research centres to make it more attractive R eact more quickly to changes in demand M inimize coordination costs of departments …Back to Montecchio Maggiore Bess devices production (Battery energy storage system) more than one hundred employees Long-term development plan up to 5 years

10. THANKS FOR YOUR ATTENTION!