Yuan dynasty banknotes were the earliest fiat money.

Fiat money is money that derives its value from government regulation or law: the initial value of fiat money is established by government decree. The term fiat currency is also used when the fiat money is used as the main currency of the country. The term derives from the Latin fiat, meaning "let it be done" or "it shall be".

Fiat money originated in 11th century China,^[1] and its use became widespread during the Yuan and Ming dynasties.^[2] The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then all reserve currencies have been fiat currencies, including the US dollar and the euro.^[3]

Characteristics[link]

The term fiat money has been defined variously as:

• any money declared by a government to be legal tender.^[4]
• state-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.^[5]
• money without intrinsic value.^[6][7]

While specie-backed representative money entails the legal requirement that the bank of issue redeem it in fixed weights of specie, fiat money's value is unrelated to the value of any physical quantity. Even a coin containing valuable metal may be considered fiat currency if its face value is higher than its market value as metal.

A feature of all fiat money is its acceptability to the government for payment of taxes and charges, or purchase of government debt, such as bonds, notes, and bills.

Fiat money is not essential for large countries, nor is it always used. An economy may function on banknotes issued by commercial banks, which are not legal tender, and hence not fiat money. This was the situation in the United States during periods prior to 1862, before the first United States Notes were created and declared by the government to be legal tender.

History[link]

Early history[link]

Song Dynasty Jiaozi, the world's earliest paper money.

The Song Dynasty in China was the first to issue paper money, jiaozi, around the 10th century AD. Although the notes were valued at a certain exchange rate for gold, silver, or silk, conversion was never allowed in practice. The notes were initially to be redeemed after three years' service, to be replaced by new notes for a 3% service charge, but, as more of them were printed without notes being retired, inflation became evident. The government made several attempts to support the paper by demanding taxes partly in currency and making other laws, but the damage had been done, and the notes fell out of favor.^[8]

The successive Yuan Dynasty was the first dynasty in China to use paper currency as the predominant circulating medium. The founder of the Yuan Dynasty, Kublai Khan, issued paper money known as Chao in his reign. The original notes during the Yuan Dynasty were restricted in area and duration as in the Song Dynasty.

However, in the later course of the dynasty, facing massive shortages of specie to fund their ruling in China, the Yuan Dynasty began printing paper money without restrictions on duration. This eventually caused hyperinflation. By 1455, in an effort to rein in economic expansion and end hyperinflation, the new Ming Dynasty ended the use of paper money.

Europe[link]

Fiat money came to Europe gradually, as an expedient way for governments to finance wars, or address imbalances in circulating coinage. It found its origin in private enterprise, as the great banking houses sought to increase their capital and trade.

In 1661, Johan Palmstruch issued the first official paper money in the West, under royal charter from the Kingdom of Sweden, through a new institution, the Bank of Stockholm. While this private paper currency was largely a failure, the Swedish parliament eventually took over the issue of paper money in that country. By 1745, its paper money was inconvertible to specie, but acceptance was mandated by the government. Foster, Ralph T. (2010). Fiat Paper Money--The History and Evolution of Our Currency. Berkeley, California: Foster Publishing. p. 59-60. ISBN 978-0-9643066-1-5. 

18th and 19th century[link]

An early form of fiat currency were "bills of credit".^[9] Provincial governments produced notes which were fiat currency, with the promise to allow holders to pay taxes in those notes. The notes were issued to pay current obligations and could be called by levying taxes at a later time.^[9]

Since the notes were denominated in the local unit of account, they were circulated from person to person in non-tax transactions. These types of notes were issued in the British colonies in America, particularly in Pennsylvania, Virginia and Massachusetts. Such money was sold at a discount of silver, which the government would then spend, and would expire at a fixed point in time later.^[9]

Bills of credit were controversial when they were first issued, and have remained controversial to this day. Those who have wanted to highlight the dangers of inflation have focused on the colonies where the bills of credit depreciated most dramatically – New England and the Carolinas. Those who have wanted to defend the use of bills of credit in the colonies have focused on the middle colonies, where inflation was practically nonexistent.^[9]

Colonial powers consciously introduced fiat currencies backed by taxes, e.g. hut taxes or poll taxes, to mobilise economic resources in their new possessions, at least as a transitional arrangement. The repeated cycle of deflationary hard money, followed by inflationary paper money continued through much of the 18th and 19th centuries. Often nations would have dual currencies, with paper trading at some discount to specie backed money.

Examples include the “Continental” issued by the U.S. Congress before the Constitution; paper versus gold ducats in Napoleonic era Vienna, where paper often traded at 100:1 against gold; the South Sea Bubble, which produced bank notes not backed by sufficient reserves; and the Mississippi Company scheme of John Law.

During the American Civil War, the Federal Government issued United States Notes, a form of paper fiat currency popularly known as 'greenbacks'. Their issue was limited by Congress just slightly over $340 million. During the 1870s, withdrawal of the notes from circulation was opposed by the United States Greenback Party. The term 'fiat money' was used in the resolutions of an 1878 party convention.^[10]

20th century[link]

By World War I most nations had a legalized government monopoly on bank notes and the legal tender status thereof. In theory, governments still promised to redeem notes in specie on demand. However, the costs of the war and the massive expansion afterward made governments suspend redemption in specie. Since there was no direct penalty for doing so, governments were not immediately responsible for the economic consequences of printing more money, which led to hyperinflation – for example in Weimar Germany.

Attempts were made to reassert currency stability by anchoring it to wholesale gold bullion rather than making it payable in specie. This money combined pure fiat currency, in that the currency was limited to central bank notes and token coins that were current only by government fiat, with a form of convertibility, via gold bullion exchange, or via exchange into US dollars which were convertible into gold bullion, under the 1945 Bretton Woods system.

Bretton Woods[link]

From 1944 to 1971, the Bretton Woods agreement fixed the value of 35 United States dollars to one troy ounce of gold.^[11]

Other currencies were pegged to the U.S. dollar at fixed rates. The U.S. promised to redeem dollars in gold to other central banks. Trade imbalances were corrected by gold reserve exchanges or by loans from the International Monetary Fund. This system collapsed when the United States government ended the convertibility of the US dollar for gold in 1971, in what became known as the Nixon Shock.

Chartalism[link]

Chartalism is a monetary theory that states the initial demand for a fiat currency is generated by its unique ability to extinguish tax liabilities. Goods and services are traded for fiat money due to the need to pay taxes in the money.

Loss of backing[link]

A fiat-money currency generally loses value once the issuing government refuses to further guarantee its value through taxation, but this need not necessarily occur. For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.^[12][13]

Monetary economics[link]

In monetary economics, fiat money is an intrinsically useless product, used as a means of payment.^[14] In some micro-founded models of money, fiat money is created internally in a community making feasible trades that would not otherwise be possible, either because producers and consumers may not anonymously write IOUs, or because of physical constraints.^[15][16]

See also[link]

	Economics portal
	Numismatics portal

• Central Bank
• European Central Bank; Federal Reserve
• Friedman rule
• Hard currency
• Money illusion
• Money supply
• Seigniorage
• Tinkerbell effect
• Value Theory
• Veil of money
• Fractional-reserve banking

References[link]

Fiat S.p.A.

Type	Società per azioni
Traded as	BIT: F
Industry	Automotive Media
Founded	11 July 1899 in Turin, Italy
Founder(s)	Giovanni Agnelli
Headquarters	Turin, Italy
Key people	John Elkann (Chairman), Sergio Marchionne (CEO)
Products	Automobiles, commercial vehicles, auto parts, newspapers, production systems
Production output	2,046,060 units (automobiles and LCVs, 2011)[1]
Revenue	€37.382 billion (2011)[1]
Operating income	€992 million (2010)[2]
Profit	€179 million (2010)[2]
Total assets	€73.44 billion (end 2010)[2]
Total equity	€12.46 billion (end 2010)[2]
Employees	137,800 (end 2010)[2]
Subsidiaries	List[3] Automobiles Ferrari (90%) Maserati Fiat Group Automobiles Abarth Alfa Romeo Fiat Automobiles Fiat Professional Lancia Chrysler (58.5%) Chrysler Dodge Jeep Ram Trucks Mopar Components and production systems Fiat Powertrain Magneti Marelli Comau Teksid Publishing and advertising Itedi La Stampa Publikompass
Website	fiatspa.com

Fiat S.p.A., (Fabbrica Italiana Automobili Torino)^[4] (Italian Automobile Factory of Turin), is an Italian automobile manufacturer based in Turin. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli. During its more than a century long history, Fiat has also manufactured railway engines and carriages, military vehicles, and aircraft. As of 2009, the Fiat group (not inclusive of its subsidiary Chrysler) was the world's ninth largest carmaker and the largest in Italy.^[5]

Fiat-based cars are built around the world. Outside Italy, the largest country of production is Brazil, where the Fiat brand is the market leader.^[6] The group also has factories in Argentina and Poland and a long history of licensing production of its products in other countries. It also has numerous alliances and joint ventures around the world, the main ones being located in Italy, France, Turkey, Serbia, India and China.

Agnelli's grandson Gianni Agnelli was Fiat's chairman from 1966 until 1996; he then served as honorary chairman from 1996 until his death on 24 January 2003, during which time Cesare Romiti served as chairman. After their^{[clarification needed]} removal, Paolo Fresco served as chairman and Paolo Cantarella as CEO. Umberto Agnelli then took over as chairman from 2003 to 2004. After Umberto Agnelli's death on 28 May 2004, Luca Cordero di Montezemolo was named chairman, with Agnelli heir John Elkann becoming vice chairman (at the age of 28), and other family members also serving on the board. At this point, CEO Giuseppe Morchio resigned, and Sergio Marchionne was named to replace him on 1 June 2004.

In September 2010, shareholders approved a plan to split Fiat's capital goods businesses from the group. Agricultural and construction equipment manufacturer CNH Global NV, truck maker Iveco, and the industrial and marine division of Fiat Powertrain Technologies were spun off into a new group on 1 January 2011. The parent company, Fiat Industrial S.p.A., was listed on the Milan stock exchange on 3 January 2011.^[7]

History[link]

Fiat 3 ½ CV (1899)

Giovanni Agnelli founded Fiat in 1899 with several investors and led the company until his death in 1945, while Vittorio Valletta administered the firm's daily activities. Its first car the 3 ½ CV (of which only eight copies were built, all bodied by Alessio of Turin)^[8] strongly resembled contemporary Benz,^[9] and had a 697 cc (42.5 cu in) boxer twin engine.^[9] In 1903, Fiat produced its first truck.^[10] In 1908, the first Fiat was exported to the US.^[10] That same year, the first Fiat aircraft engine was produced. Also around the same time, Fiat taxis became somewhat popular in Europe.^[11] By 1910, Fiat was the largest automotive company in Italy — a position it has retained since. That same year, a plant licensed to produce Fiats in Poughkeepsie, NY, made its first car. Owning a Fiat at that time was a sign of distinction. The cost of a Fiat in the US was initially $4,000^[12] and rose up to $6,400 in 1918^[13], compared to $ 825 for a Ford Model T in 1908^[14], and $ 525 in 1918, respectively^[15]. Upon the entry of the US into World War I in 1917, the factory was shut down as US regulations became too burdensome. At the same time, Fiat had to devote all of its factories to supplying the Allies with aircraft, engines, machine guns, trucks, and ambulances. After the war, Fiat introduced its first tractor, the 702.^[16] By the early 1920s, Fiat had a market share in Italy of 80%.^[17]

Corso Dante plant

Lingotto factory (1928)

Advertisement, 1939

Mirafiori plant

Lingotto factory (today)

In 1921, workers seized Fiat's plants and hoisted the red flag of communism over them. Agnelli responded by quitting the company. However, the Italian Socialist Party and its ally organization, the General Confederation of Labor, in an effort to effect a compromise with the centrist parties ordered the occupation ended. In 1922, Fiat began to build the famous Lingotto car factory — then the largest in Europe  — which opened in 1923. It was the first Fiat factory to use assembly lines; by 1925, Fiat controlled 87% of the Italian car market.^[18] In 1928, with the 509, Fiat included insurance in the purchase price.^[19]

Fiat made military machinery and vehicles during World War II for the Army and Regia Aeronautica and later for the Germans. Fiat made obsolete fighter aircraft like the biplane CR.42, which was one of the most common Italian aircraft, along with Savoia-Marchettis, as well as light tanks (obsolete compared to their German and Soviet counterparts) and armoured vehicles. The best Fiat aircraft was the G.55 fighter, which arrived too late and in too limited numbers. In 1945 — the year Mussolini was overthrown — the Italian Committee of National Liberation removed the Agnelli family from leadership roles in Fiat because of its ties to Mussolini's government. These were not returned until 1963, when Giovanni's grandson, Gianni, took over as general manager until 1966, as chairman until 1996.

Gianni Agnelli[link]

Gianni Agnelli (in the center) and the FIAT board of directors meet Italian President Sandro Pertini (at his right) during an official visit to the new Sevel Val di Sangro factory, 1981.

Among the younger Agnelli's first steps after gaining control of Fiat was a massive reorganization of the company management, which had previously been highly centralized, with little provision for the delegation of authority and decision-making. Such a system was effective in the past, but lacked the responsiveness and flexibility needed by Fiat's steady expansion, and the growth of its international operations in the 1960s. The company was reorganized on a product-line basis, with two main product groups — one for passenger cars, the other for trucks and tractors — and a number of semi-independent division and subsidiaries. Top management, freed from responsibility for day-by-day operations of the company, was able to devote its efforts to more far-reaching goals. In 1967, Fiat made its first acquisition when it purchased Autobianchi; with sales amounting to $1.7 billion, it outstripped Volkswagen, its main European competitor, and in 1968 produced some 1,750,000 vehicles while its sales volume climbed to $2.1 billion. According to Newsweek in 1968, Fiat was "the most dynamic automaker in Europe...[and] may come closest to challenging the worldwide supremacy of Detroit." Then, in 1969, it purchased controlling interests in Ferrari and Lancia. At the time, Fiat was a conglomerate, owning Alitalia, toll highways, a typewriter and office machine manufacturer, electronics and electrical equipment firms, a paint company, a civil engineering firm, and an international construction company. Following up on an agreement Valletta had made with Soviet officials in 1966, Agnelli constructed the AvtoVAZ plant in the new city of Togliattigrad on the Volga. This began operation in 1970, producing a local version of the Fiat 124 as the Lada. On his initiative, Fiat automobile and truck plants were also constructed in industrial centers of Yugoslavia, Poland, Bulgaria, and Romania.

Despite offering a relatively competitive range of cars, Fiat was not immune from the financial pressures that the auto industry confronted following the 1973 oil price shock. Towards the end of 1976 it was announced that the Libyan government was to take a 9.6% shareholding in the company in return for a capital injection worth an equivalent of £250 million.^[20] The size of the Libyan investment is apparent when it is compared to the £310 million IMF loan that the Italian government was trying to negotiate at the time.^[20] Other aspects of the Libyan agreement included the construction of a truck and bus plant at Tripoli.^[20] Chairman Agnelli candidly described the deal as "a classic petro-money recycling operation which will strengthen the Italian reserves, provide Fiat with fresh capital and give the group greater tranquility in which to carry out its investment programmes".^[20] Equally noteworthy was the fact that despite the dilutive effect of the Libyan investment on existing shareholders, the company's largest shareholder, the Agnelli family, retained a 30% stake in the recapitalised business.^[20]

In 1979, the company became a holding company when it spun off its various businesses into autonomous companies, one of them being Fiat Auto. That same year, sales reached an all-time high in the US, corresponding to the Iranian Oil Crisis. However, when gas prices fell again after 1981, Americans began purchasing sport utility vehicles, minivans, and pickup trucks in larger numbers (marking a departure from their past preference for large cars). Also, Japanese automakers had been taking an ever-larger share of the car market, increasing at more than half a percent a year. Consequently, in 1984, Fiat and Lancia withdrew from the United States market. In 1989, it did the same in the Australian market, although it remained in New Zealand.

In 1986, Fiat acquired Alfa Romeo from the Italian government. Also, in 1986 15% of Fiat company stock was still owned by Libya, an investment dating back to the mid-seventies. US foreign policy under President Reagan's administration canceled a Pentagon contract to produce earth movers with Fiat and pressured the company into brokering a buyout of the Libyan investment. In 1992, two top corporate officials in the Fiat Group were arrested for political corruption.^[21] A year later, Fiat acquired Maserati. In 1995 Alfa Romeo exited the US market. Maserati re-entered the US market under Fiat in 2002. Since then, Maserati sales there have been increasing briskly.

Paolo Fresco[link]

Paolo Fresco became chairman of Fiat in 1998 with the hope that the veteran of General Electric would bring more emphasis on shareholder value to Fiat. By the time he took power, Fiat's market share in Italy had fallen to 41%^{[citation needed]} from around 62% in 1984.^{[citation needed]} However, a Jack Welch-like management style would be much harsher than that used by the Italians (e.g., precarious versus lifetime employment). Instead, Fresco focused on offering more incentives for good performance, including compensation using stock options for top and middle management.

However, his efforts were frustrated by union objections. Unions insisted that pay raises be set by length of tenure, rather than performance. Another conflict was over his preference for informality (the founder, Giovanni Agnelli, used to be a cavalry officer). He often referred to other managers by their first name, although company tradition obliged one to refer to others using their titles (e.g., "Chairman Fresco"). The CEO of the company, Managing Director Paolo Cantarella, ran the day-to-day affairs of the company, while Fresco determined company strategy and especially acted as a negotiator for the company. In fact, many speculated the main reason he was chosen for the job was to sell Fiat Auto (although Fresco fervently denied it).^{[citation needed]} In 1999, Fiat formed CNH Global by merging New Holland NV and Case Corporation.

Partnership with GM[link]

This section requires expansion.

The current CEO views alliances such as these as the deciding factor of the future success of Fiat. In 2005, Fiat was courting Ford.^[22]

As part of the recent divestitures, under the guidance of CEO Giuseppe Morchio in 2003 Fiat shed its insurance sector, which it was operating through Toro Assicurazioni to the DeAgostini Group. In the same year, Fiat sold its aviation business, FiatAvio to Avio Holding. In February 2004, the company sold its interest in Fiat Engineering, as well as its stake in Edison.

Fiat faces a multitude of threats, including rising steel prices (up by 16–30% beginning of 2008),^[23] a strong Euro, and increased competition from Japanese and South Korean car manufacturers in Europe. Although the light-vehicle market share of Japanese and South Korean automakers in Europe is less than in the US (12.5% and 3.9%, respectively versus 30% and 3.9% in the US), it has been increasing steadily at about a half a percent a year.^{[citation needed]} In April and May 2009, the possibility of a takeover of Adam Opel GmbH, a subsidiary of General Motors, was being discussed between the two companies. The deal fell through, and General Motors held on to Opel/Vauxhall.

Sergio Marchionne[link]

Fiat 500

Sergio Marchionne has impressed investors since taking over as CEO in June, 2004.^[24] Losses have fallen steadily since 2002, and Q4 of FY2005 saw its first profit in 17 quarters, and had a profit of €196M for the first 9 months of FY2006.^[25] Mr. Marchionne has reduced Fiat's managerial bureaucracy and changed its tone to a focus on markets and profit. While the chairman, Luca di Montezemolo, dealt with politicians and unions, Marchionne rebuilt the car business. The success of the Grande Punto model has in large part been responsible for the turnaround in Fiat's fortunes, but the quite successful Bravo (successor to the Stilo) and the award winning 500 have really cemented it. Fiat has formed a joint venture with India's TATA Motors and China's Chery motors. Under Marchionne it has also re-entered several large markets that it had exited years before, such as Mexico and Australia. In December 2008, Marchionne announced Fiat have to become one of the top five automakers to survive in the long run. In 2009, Fiat expressed interest in acquiring General Motors' Opel and South American operation. GM declined Fiat's offer.^[26] In Marchionne´s leadership Fiat returned to the United States and Canada markets with the new 500.

• 

  John Elkann, Chairman of the Fiat Group

• 

  Sergio Marchionne, Chief Executive Officer of Fiat Group

Acquisition of Chrysler[link]

On 20 January 2009, Fiat S.p.A. and Chrysler LLC announced their intention to form a global alliance. Under the terms of the agreement, Fiat would take a 20% stake in Chrysler and gain access to its North American distribution network in exchange for providing Chrysler with technology and platforms to build smaller, more fuel-efficient vehicles in the US and providing reciprocal access to Fiat's global distribution network.^[27][28]

In addition, the proposed agreement would entitle Fiat to receive a further 15% (without cash consideration) through the achievement of specific product and commercial objectives. No cash or financial support was required from Fiat under the agreement. Instead it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models for in the US. Fiat would also provide engine and transmission technology to enable Chrysler to introduce smaller, fuel-efficient models in the NAFTA market. The deal was engineered by Fiat chief Sergio Marchionne, who pulled the Italian group back from the brink of collapse after taking over in 2004. The principal objective of the partnership was to provide both groups with significantly enhanced economies of scale and geographical reach at a time when they were struggling to compete with larger and more global rivals such as Toyota, Volkswagen and alliance partners Renault S.A. and Nissan.^[27]

On 30 April 2009, Fiat announced the signing of a series of agreements to form a global strategic alliance with Chrysler,^[29] with Fiat receiving an initial 20% stake and the option to further purchase/receive additional ownership interests in Chrysler, pursuant to certain conditions being met. Fiat's shareholding would be capped at 49%, however, until all government loans had been repaid.^[30][31]

Fiat would not have to pay any money for its 20% of Chrysler. On 7 June 2009, the Indiana State Police Pension Fund, the Indiana Teacher's Retirement Fund, and the state's Major Moves Construction Fund asked the US Supreme Court to delay the sale of Chrysler to Fiat while they challenge the deal. The funds argued that the sale went against US bankruptcy law because it unlawfully rewarded unsecured creditors ahead of secured creditors.^[32] On 9 June 2009, the Supreme Court lifted the temporary hold, clearing the way for Fiat to acquire Chrysler.^[33] See Indiana State Police Pension Trust v. Chrysler for more information. On 10 June, the Supreme Court announced that Fiat was now an owner of the new Chrysler a.k.a. Chrysler Group LLC.

Marchionne was appointed CEO of Chrysler following its emergence from bankruptcy proceedings. Under his leadership, Chrysler has taken on a structure similar to that of Fiat and has released, in quick succession, a large number of completely redesigned or refreshed vehicles.^{[citation needed]} Fiat launched its 500, which had been available in Europe since 2007, in the United States and Canada in 2011, marking the company's return to the American auto market, which it had been absent from since 1984. Prior to this, Fiat's main presence on the continent was Mexico, where it offers a greater variety of products than in the United States and Canada.

On 10 January 2011, Fiat announced that it had increased its share in Chrysler from 20% to 25% following the achievement of the first of three performance objectives.^[34] On 11 April 2011, it announced achievement of the second performance objective, increasing its stake a further 5% to 30%.^[35] On 24 May 2011, Fiat announced that it had paid Chrysler US$ 1,268 million for a further 16% interest, increasing its stake total stake to 46% (fully diluted). The transaction coincided with Chrysler refinancing its debt to the U.S. and Canadian governments.^[36] On 25 May autonews.com reported that Fiat could buy government stakes in Chrysler as soon as the end of July 2011, increasing its total stake to 54%.^[37]

In May 2011, it emerged that Fiat could actually increase its stake in Chrysler Group to more than 70 percent through the exercise of further options.^[38]

In a regulatory filing dated 22 July 2011, the Michigan-based automaker reported that Fiat held a 53.5% interest (fully diluted). Fiat and Chrylser have both stated that they expect that interest to reach 58.5% by the end of 2011 as result of achievement of the third of the three performance objectives.^[39] In 5 January 2012 Fiat released press info that the ownership has increased to 58.5%.^[40]

Partnership with Mazda[link]

In 2012, Fiat formed an alliance with Mazda to develop and build a new roadster for the Mazda and Alfa Romeo brands.^[41]

Activities[link]

Fiat Group revenues by sector in 2009.

The group's activities were initially focused on the industrial production of cars, industrial and agricultural vehicles. Over time it has diversified into many other fields, and the group now has activities in a wide range of sectors in industry and financial services. It is Italy's largest industrial concern. It also has significant worldwide operations, operating in 61 countries with 1,063 companies that employ over 223,000 people, 111,000 of whom are outside Italy.

Principal subsidiaries[link]

Fiat's principal operating subsidiaries (direct and indirect) include: Fiat Group Automobiles S.p.A. (FGA); Chrysler Group LLC (a subsidiary of FGA); Fiat Automoveis, S.A. (subsidiary of FGA); FGA Capital S.p.A. (a JV held 50% by FGA); Ferrari S.p.A.; Maserati S.p.A.; Fiat Powertrain Technologies S.p.A.; Magneti Marelli S.p.A.; Teksid S.p.A.; Comau S.p.A.; Itedi-Italiana Edizioni S.p.A. (see 2010 Annual Report^[42]).

Automotive[link]

For Fiat branded cars see Fiat Automobiles

Global locations of Fiat Group automobile production sites. (Including own plants, joint ventures and license production)

Fiat 500 (2007)

Lancia Delta

Alfa Romeo 159

Maserati GranTurismo

Ferrari 458 Italia

Fiat is the largest vehicle manufacturer in Italy, with cars ranging from small Fiat city cars to sports cars made by Ferrari, and vans and trucks such as the Ducato. Besides Fiat Group Automobiles S.p.A, the Fiat Group automotive companies include Ferrari S.p.A. and Maserati S.p.A. The Fiat Group Automobiles S.p.A. companies include: Abarth & C. S.p.A., Alfa Romeo Automobiles S.p.A., Chrysler Group LLC, Fiat Automobiles S.p.A., Fiat Professional and Lancia Automobiles S.p.A.. Ferrari S.p.A. is 90% owned by the Fiat Group.^[43]

The European Car of the Year award, Europe's premier automotive trophy for the past 40 years, has been awarded twelve times to the Fiat Group, more than any other manufacturer. Most recently the Fiat Nuova 500 has won the award for European Car of the Year 2008.^[44]

List of Fiat Group models which have won European Car of the Year:

• 1967: Fiat 124
• 1970: Fiat 128
• 1972: Fiat 127
• 1980: Lancia Delta
• 1984: Fiat Uno
• 1989: Fiat Tipo
• 1995: Fiat Punto
• 1996: Fiat Bravo/Brava
• 1998: Alfa Romeo 156
• 2001: Alfa Romeo 147
• 2004: Fiat Panda
• 2008: Fiat 500

Commercial vehicles[link]

On 17 April 2007 Fiat Automobiles' light commercial vehicle unit Fiat Veicoli Commerciali was rebranded as Fiat Professional.^[45] Some of Fiat's light commercial vehicle products include the Fiat Ducato, Fiat Scudo and Fiat Doblò Cargo.

Fiat's main commercial vehicles unit Iveco was demerged into Fiat Industrial at the beginning of 2011. This encompasses trucks (Iveco and Seddon Atkinson), buses (Iveco and Irisbus) and firefighting vehicles (Camiva, Iveco and Magirus). For information on their military vehicles, see Ariete.

Components[link]

The major Italian component maker Magneti Marelli is owned by Fiat, and in turn owns the other brands Carello, Automotive Lighting, Siem, Cofap, Jaeger, Solex, Veglia Borletti, Vitaloni, and Weber; other accessory brands include Brazilian Cofap.

Metallurgical products[link]

Fiat owns Teksid S.p.A., the largest iron foundry group in the world with a production capacity of approximately 600,000 tons annually. The company was established in December 1978, and designs and produces cylinder blocks, cylinder heads, exhaust manifolds, drive shafts, camshafts and other components for automobiles and commercial vehicles. Teksid, which is specialized in casting and processing iron, has plants in France, Portugal, Poland, Brazil, Mexico and China. Since 2007, Teksid S.p.A. runs also Teksid Aluminum S.r.l. a company specialized in casting and producing auto components from aluminium alloys.

Production systems[link]

Production systems are made mainly through Comau S.p.A. (now Comau Systems), which bought the American Pico, Renault Automation and Sciaky and produces industrial automation systems. In the 1970s and 1980s, the company became a pioneer in the use of industrial robotics for the assembly of motor vehicles. Fiat assembly plants are among the best automated and advanced in the world.

Services[link]

An insurance company, Toro Assicurazioni, allowed Fiat to control a relevant part of this market (also with minor companies like Lloyd Italico) and to interact with some associated banks. Toro Assicurazioni was acquired by the giant insurance company Assicurazioni Generali and is no longer related to the Fiat Group. Fiat still retains control of Augusta assicurazioni.

Construction[link]

Ingest Facility and Fiat Engineering work in various fields of construction, while IPI is a mediation company that also deals with the management of real estate properties.

Information technology[link]

Fiat Group is present in IT fields and in communications with ICT — Information & Communication Technology, Espin, Global Value, TeleClient, London and Atlanet.

Publishing and communication[link]

Fiat group also owns important editorial brands, like La Stampa (created in 1926 for the famous newspaper), Itedi, and Italiana Edizioni. Some national and local newspapers are owned or otherwise controlled by the different companies. A specialised advertising space reseller is Publikompass, supported by the Consorzio Fiat Media Center.

Other activities[link]

Fiat Gesco, KeyG Consulting, Sadi Customs Services, Easy Drive, RM Risk Management and Servizio Titoli are minor companies that work for public services, delivering services in economics and financial fields. Other activities include industrial securitisation (Consorzio Sirio), treasury (Fiat Geva), Fiat Information & Communication Services.

Fiat supports the Fondazione Giovanni Agnelli, an important foundation for social and economic research. Palazzo Grassi, a famous ancient building in Venice, now a museum and formerly supported by Fiat, was eventually sold to the French businessman François Pinault in January 2005.

Fiat has recently begun sponsoring the Jamaican bobsledding team and promoting this sponsorship through commercials. Many like Jamaican athletes because they see them as underdogs and as people who enjoy life. While Volvo sponsors golf, Mercedes tennis, and Hyundai soccer, Fiat is trying to look unique and more light-hearted. Further, the team is relatively cheap to sponsor.^[46]

The group is present in many countries, not only in the West. Notably, it was one of the first companies to build factories in Soviet territory, with the best known examples in Vladivostok, Kiev and Togliatti. The Russian government later continued the joint venture under the name AutoVAZ (known as Lada outside the former USSR). The venture was most notable for the Lada Riva. Fiat also has a subsidiary in Poland at Tychy, (formerly called FSM) where Fiat's small cars (the 126, Cinquecento, Seicento, Nuova 500 and Ford Ka) and small diesel engines are made. Fiat also has factories in Argentina, Brazil, and Italy. In addition, its cars are produced through licensing and joint-venture agreements in China, Egypt, France, India, South Africa, Turkey, and Vietnam.^[47] Local variants of Fiats are produced at these factories as well as a world car, the Palio. As of 2005, the company holds the first position in the Brazilian automobile market with a market share close to 25%.

Fiat has articulated that it wishes to focus on expanding into third-world markets because, in the words of former chairman Paolo Fresco, "those are the only markets where you can expect growth.^[47] And it is true that Fiat's specialization in smaller cars puts it at an advantage in those markets, but cars sold in third-world countries tend to be much simpler than those sold elsewhere (e.g., most lack air conditioning), and thus require much less money to develop.

Fiat is also present in the combat vehicle sector through a consortium between Iveco and OTO Melara, their most notable product being the LAV B1 Centauro.

Former activities[link]

Agricultural and construction equipment[link]

Fiat Group previously owned CNH Global (which includes Case Construction, Case IH, Flexi-Coil, Kobelco, New Holland, New Holland Construction, and Steyr); and Fiat-Hitachi Construction. This was demerged into Fiat Industrial at the start of 2011. CNH is the second largest agricultural equipment manufacturer in the world after Deere & Company and is also the third largest producer of construction equipment after Caterpillar Inc. and Komatsu. When part of Fiat Group, CNH accounted for around 20% of its total revenues.^[48]

Aviation and motorcycles[link]

Fiat G91T training aircraft

Fiat, as Fiat Aviazione, was an important aircraft manufacturer, focused mainly on military aviation. After World War I, Fiat consolidated several Italian small aircraft manufacturers, like Pomilio and Ansaldo. Most famous were Fiat biplane fighter aircraft of the 1930s, Fiat CR.32 and Fiat CR.42. Other notable designs were fighters CR.20, G.50, G.55 and a bomber, the Fiat BR.20. In 1950s, the company designed the G.91 light ground attack plane. In 1969, Fiat Aviazione merged with Aerfer to create Aeritalia.

In 1959, Piaggio came under the control of the Agnelli family. In 1964, the aeronautical and motorcycle divisions split to become independent companies. The aeronautical division was named IAM Rinaldo Piaggio. Today the aeronautical company Piaggio Aero is controlled by the family of Piero Ferrari, which also holds 10% of the carmaker Ferrari.

The motorcycle division, Vespa, thrived until 1992, when Giovanni Alberto Agnelli became CEO — but Agnelli was already suffering from cancer, and died in 1997. In 1999, Morgan Grenfell Private Equity acquired Piaggio.

Rail transport[link]

Fiat Ferroviaria, there has been a long history going back pre WW2 of FIAT motive power used for both Diesel and electric locomotives and railcars (Littorine) not only in Italy, but other parts of Europe, and in South America, but from the 1970s onward, more widely known throughout the world with their successful commercial development of the Pendolino tilting trains, the first working prototype four car set being run in the mid-1970s.

Recreation[link]

The Fiat Group owned the Sestriere skiing facilities; the village in the Alps is a creation of the Agnelli family. The Sestriere skiing facilities were sold by the group in 2006.

Enterprises outside Italy[link]

See list of Fiat Group assembly sites

Fiat was a key player in developing motor industries for a number of countries from the 1950s, particularly in Eastern Europe, Spain, Egypt, Ethiopia and Turkey. The AutoVAZ state works Lada products in Tolyatti (Togliatti), Russia, were Fiat based, as were SEAT products of Spain. Lada is now controlled by Renault, and SEAT by Volkswagen. A small number of Fiats were built in Bulgaria. Among Fiat's earliest foreign assembly plants was one in Poughkeepsie, New York, between 1910 and 1913. The building is now part of the Marist College campus.

Fiat Automóveis (Brazil)[link]

The 1979 Brazilian Fiat 147 was the first modern car to run on pure hydrous ethanol fuel (E100).

Fiat Automóveis S.A., a subsidiary of Fiat S.p.A.,^[49] began making automobiles in Brazil in 1976 beginning with the production of the Fiat 147, the Brazilian version of the Italian Fiat 127, produced until 1986. More than 10,000,000 units were produced in Fiat Automóveis factory in Betim since 1976,^[50] plus 232,807 units in the Fiat Argentina plant of Córdoba.

Launched in July 1979, the 147 was the first mass produced car that ran on ethanol as fuel instead of petrol.^[51][52][53] The performance slightly increased and fuel consumption was 30% higher but the cost of the alcohol was a quarter of the gasoline because, at that time, petrol had become expensive as a consequence of the 1979 oil crisis. This version was nicknamed cachacinha (little cachaça) because it had the scent of that Brazilian drink.

The Fiat Siena Tetrafuel 1.4 is a multifuel car that runs as a flexible-fuel on pure gasoline, or E20-E25 gasohol, or pure ethanol (E100); or as a bi-fuel with CNG.

In October 1984 Fiat Automóveis introduce the Fiat Uno, as a 1985 model. Currently, the car is sold as the Fiat Mille, as an entry-level model, and received its most recent facelift for the 2004 model year. From 1984 until 2006, up to 2,000,000 Fiat Unos were made in Brazil. The production of the world car — the Fiat Palio – began in 1996.^{[citation needed]}

After the successful 2003 introduction of flexible-fuel vehicles in the Brazilian market,^[54] Fiat Automóveis launched its first flex model in March 2004, the Fiat Palio, followed by the Siena and Palio Weekend.^[55] Fiat sold 665,514 vehicles in Brazil in 2008,^[56] allowing the carmaker to continue as the market leader for seven years in a row.^[57] Flex fuel automobiles represented almost 100 percent of the car sales in 2008, and 92 percent of all light-duty trucks sold.^[58]

In 2006 Fiat introduced the Fiat Siena Tetra fuel, a four-fuel car developed under Magneti Marelli of Fiat Brazil.^[59][60] This automobile can run as a flex-fuel on 100% ethanol (E100); or on E20-E25 blend, Brazil's normal ethanol gasoline blend;^[61] on pure gasoline (though no longer available in Brazil since 1993,^[62][63] it is still used in neighboring countries); or just on natural gas (CNG). The Siena Tetrafuel was engineered to switch from any gasoline-ethanol blend to CNG automatically, depending on the power required by road conditions.^[64]

Fiat Argentina[link]

Fiat has been present in Argentina since the beginning of 20th century. There was a Fiat manufacturing plant in Córdoba at least as far back as 1954 when Fiat entered into a joint venture with two local companies to manufacture tractors. In 1959 the construction of a car plant in Caseros was approved, and 1960 saw the production there of the first Argentinian produced Fiat passenger car, a Fiat 600, after the Fiat 1100 Export and after in 1963 the Fiat 1500. In 1977 appears the Fiat 133, just a rebadged Seat 133 but made in Argentina. By 1978 a car manufacturing facility was well established in Córdoba, producing Fiat 128s as well as two models which from the Italian perspective belonged in earlier decades, the 125 (with some derivates) and the 600R.^[65]

In 1980 a joint venture with PSA called Sevel Argentina S.A. was begun, which lasted until 1995. The current day automobile manufacturing started with a new factory opened in Córdoba on 20 December 1996.^[66] From April 1997 the Siena and Palio models production started.

Production was suspended in the early 2000s as the Argentinean economy went downhill. In 2008 Fiat invested new money and the production of Fiat Siena saloon and the Fiat Palio was started. In October 2009, a Fiat Siena HLX becomes the 2 million unit produced by Fiat in Argentina. The Fiat Auto Argentina S.A. is Fiat S.p.A. owned company.^[67]

Fiat Serbia[link]

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Its first enterprise came in 1955, when it agreed to a deal with Yugoslav carmaker Zastava to assemble Fiats for Eastern Europe. The first cars produced by Zastava were its versions of the Fiat 1300 and Fiat 1400. By 1970, Zastava was producing parts for the newer Fiat 124 and Fiat 125 models, which were assembled in Poland. The Zastava 750, launched in 1962, was Zastava's version of the iconic Fiat 600 minicar. It outlived the car on which it was based, with production lasting until 1981.

Zastavas were not popular outside of Eastern Europe before the 1980s, although they were exported to the US under the Yugo brand beginning in 1985.

The most famous product launched by Zastava is the Zastava 101, a front-wheel drive car based on the Fiat 128, also available as a hatchback version never sold in Italy. Despite numerous bad press about quality and reliability, it sold well in Yugoslavia due to its low price, cheap maintenance costs and simple mechanical design.

With the demise of the aged Zastava 750 in 1981, the minicar gap in the Zastava range was filled by the Zastava Koral, which was best known in Britain and America as the Yugo Tempo. It was based on the 1971 Fiat 127, which was due to be replaced by the Fiat Uno in 1983. It was among the cheapest cars sold in both countries, and it was well received in its class in Britain, but not so in the more competitive US market. But hostility towards Yugoslavia in the wake of the 1992 civil unrest saw a swift ending of imports to both Britain and America.

The Zastava factory in Kragujevac was later bombed, but was rebuilt after the war ended, and production continued at another factory in Kragujevac.

In 1987, Zastava came up with a new car design. The Zastava Florida – known in other markets as the Yugo Sana – was styled by Giorgetto Giugiaro at the ItalDesign studio, featured a range of refined Peugeot engines, and was mechanically similar to the forthcoming and highly acclaimed Fiat Tipo. It was sold in Britain from 1988 to 1992, but was withdrawn from sale for a number of reasons — particularly the domestic upheavals in Yugoslavia and the fall in popularity of the whole Yugo range in Britain. Sales continued in its homeland, with an update at the end of the 1990s.

Zastava did not launch another new car for another 16 years. The 2003 Zastava 10 model was another Fiat design — this time the second generation Punto. It boasts similar features to the Punto and other cars in its class such as the Volkswagen Polo. It is competitively priced compared to other similar-sized cars, including the Punto on which it is based.

Four years after its launch, the Zastava 10 has not yet been sold outside of the former Yugoslavia.

According to Fiat sources a new memorandum of understanding between Fiat and the Serb ministry of economic and regional development about the acquisition of Zastava's Kragujevac plant foresees a new company being set up in which the Italians would have a 70 percent stake and the Serb government 30 percent.^[68] Several models are to be introduced to the plant once its upgrade is complete, including possibly the Fiat 500 and the new low cost vehicle that Fiat is introducing to compete with Renault's Dacia brand.

Once fully bought by Fiat in 2008, the factory was renamed from "Zastava Automobili Srbija" to "Fiat Automobili Srbija" and the production of Fiat cars only has started.

In 2010 and 2011, FAS (Fiat Automobili Srbija) has seen large scale reconstruction. FAS made preparations for the production of new model, code named "ElleZero" (L0). New modern montage line was installed, new production buildings were built, and storage space was expanded. First sample of a new car was taken from the montage line in December 2011. Large scale production is scheduled to start in first quarter of 2011. According to plans factory should meet median production of 300 000 cars annually in 2013. In the same time with company renovation, industrial zone was expanded to accommodate space for cooperant companies in Customs Free zone „Grošnica“, initially planned to be built on location „Korman Polje“.

It is expected that a new car model, codenamed Fiat "ElleZero", will be produced in Serbia sometime in 2012.

Polski Fiat/FSO (Poland)[link]

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Fiat automobiles have been made in Poland since 1920. In 1932, the Polskie Zakłady Inżynieryjne (Polish Engineering Works, PZInż) started the production of Fiat 508, produced until 1939 also as a military vehicle. In 1936 the licence was extended to include the Fiat 518 model. In 1965, the Polish communist government signed a deal with Fiat to produce selected Fiat models in Poland at the FSO factory in Warsaw that had been built in 1951. Production of the new car — the Polski Fiat 125p – began in 1967. It was visually identical to the Fiat 125, but it made use of older Fiat mechanicals which dated back to 1960. The car sold well in its homeland and was soon exported to Western Europe. In 1978 it appeared on a new five-door hatchback, the FSO Polonez, that made use of Fiat 125p running gear. After 1982, Fiat withdrew its licence; since then FSO badge was reinstated.

The Polski Fiat 125p design survived until 1991, by which time almost 1,500,000 had been made in less than 25 years. It was a cheap competitor for similar Eastern European budget cars, and by the time of its demise, many Eastern European carmakers were adopting modern Western style designs in place of the archaic three-box saloons that had barely moved out of the 1960s.

FSO was taken over by Daewoo of South Korea in 1995, by which time the FSO Polonez had been replaced by the Caro, which was little more than a facelift of the 1978 design with underpinnings dating back to 1960. This car was sold in Western Europe until the end of the 1990s, and production finally finished in 2002.

FSO had become independent again in late 2000, after Daewoo went bankrupt and was taken over by General Motors. Despite this, FSO continued to build versions of the Daewoo Matiz and Daewoo Lanos. These cars remain in production to this day, although the target of the factory is to focus on the production of the Chevrolet Aveo which has already been introduced.

Fiat 500 & 126

The Fabryka Samochodów Małolitrażowych (FSM) in Bielsko-Biała and Tychy started the output of the Fiat 126(p) in 1973 and the Cinquecento in 1991.

In 1992 90% of stock of FSM (Fiat Auto Poland, since 1993) was purchased by Fiat Auto. since then it produced Cinquecento, Uno, Seicento, Siena and Palio Weekend models with the capacity up to 200.000 cars a year. In 2003, FSM become the sole producer of Fiat Panda, and in 2007 of new Fiat 500 model. The capacity was increased to ca. 280.000 cars a year, and due to new investments in 2006–2007 will reach over half a million in 2008. This will enable Fiat Auto Poland to include a new model of the Ford Ka, a joint Ford-Fiat project, in its production. It is worth noting both Panda and 500 were selected European car of the year, respectively in 2004 and 2008.^[69]

Other Fiat investment in Poland is a joint Fiat-GM venture of Powertrain, producing multijet (see JTD engine) car engines both for Fiat and GM models.

AutoVAZ Lada (Russia)[link]

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In 1966, Fiat helped USSR state industries build a new car factory (AvtoVAZ) on the Volga river. A planned city called Tolyatti (named after Palmiro Togliatti, former Italian Communist Party Secretary) was developed around the factory, which started producing a "people's car" similar to the Volkswagen Beetle and Citroën 2CV of Germany and France. The new Soviet car, called the Lada, was a more spacious offering, in four-door saloon and five-door estate variants. Fiat installed British machine tools supplied by Herbert-BSA^[70] of Birmingham for the manufacture of many Lada parts. The 124's design was mechanically upgraded to survive treacherous Russian driving conditions and extremely cold winters. Imports to Western Europe, Canada, and some third world countries sold well owing to their low price. This car was upgraded to become the Lada Riva (marketing name in some markets) in 1980.

The four-wheel drive Lada Niva uses some Fiat based components, e.g. engine and gearbox, but the body and four-wheel drive system are VAZ designs.

Sollers[link]

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In June 2008 Fiat and Severstal's Sollers JSC formalised a number of joint ventures to make and sell Fiat cars and engines in Russia.

In June 2011 Sollers JSC declined previous agreements with Fiat and announced that a joint venture would be created with Ford motor company.

Bulgaria[link]

1967–1971 produced Pirin-Fiat in Lovech, Bulgaria.

Tofaş (Turkey)[link]

Tofaş is joint venture owned by Fiat SpA and Koç Holding (37.8% Fiat Group Automobiles, 37.8% Koc and 24.3% others).^[71] The Fiat 124 was produced under licence by Tofaş as the Tofaş Murat. This was replaced by a version of the Fiat 131, known as the Tofaş Şahin. Today the Fiat Linea car is amongst those manufactured by the Fiat-Tofas joint venture in Turkey, and the company has 12.1% of the Turkish car market as of 2007.^[72]

SEAT (Spain)[link]

In Spain, SEAT – Sociedad Española de Automóviles de Turismo (Spanish Touring Car Company) was established with Fiat assistance in 1950, producing Fiat models under its own brand name until 1981, when Fiat withdrew its support. In 1982 SEAT signed a cooperation agreement with the German manufacturer Volkswagen and by the end of 1986 after a purchase of a majority stake SEAT had become part of the Volkswagen Group. However, production of some Fiat-based models continued, ending with the Fiat-based SEAT (the Marbella) in 1996.

South Africa[link]

In South Africa, the Fiat Uno was assembled under licence by Nissan, which marketed it through its dealerships as the Uno, with limited Fiat branding.

Ethiopia[link]

The Fiat 131, known as the Holland Car DOCC.

Egypt[link]

Following the Egyptian Revolution of 1952, President Gamal Abdel Nasser ordered the EGID (General Intelligence Agent) to establish a state owned automobile company. Nasr was founded in 1960 in Helwan, Egypt. It began producing some Fiat based models, but later produced the Tofaş Şahin under license by Tofaş. The Fiat 128 last model was built in 2008, while the Şahin is in production in Egypt.

Currently the El-Mashreq Company, a part of the Seoudi Group is the main manufacturer of Alfa Romeo and Fiat vehicles for the Egypt market. The AAV was also an Egypt manufacturer for Fiat. They assembled the Fiat Ritmo in order of Nasr.

India (Premier Automobiles)[link]

Premier Automobiles Limited is a Mumbai-based manufacturer of vehicles founded in 1944. In 1951, the company began producing versions of the Fiat 500 for the Indian market. This was followed by the Fiat 1100 in 1954. In 1973, the Premier name was used on its vehicles for the first time, the Premier President, based on the Fiat 1100 as Premier Padmini. In 1984, they launched the Fiat 124-based Premier 118NE and 138D models.

Fiat India Automobiles Private Limited (FIAPL) is a joint venture between Fiat and Mumbai based Tata Motors. It was founded in 1997. Fiat builds the Palio Stile and Palio Stile Multijet in India and imports its Fiat 500 into India from Italy, whereas Fiat has many cars under its hood planned for India like the internationally acclaimed Linea, Grande Punto and Bravo, of which the Linea was released in January 2009 and the Punto in June 2009, both the cars have been well received both by the press and by the public. The Fiat plant is situated in Ranjangaon near Pune in Maharashtra and also manufactures the Tata Indica.^[73]

Pakistan[link]

Raja Motors are the authorized manufacturers of Fiat motor vehicles in Pakistan since 1948. The manufacturing started with VESPA scooters in 1948. The project was expanded in 2001 to facilitate assembly-cum-manufacturing of Fiat UNO cars. The production facility is located in Landhi Industrial Area, Karachi, Pakistan.

Sri Lanka[link]

In 1964–65, the Ceylon Transport Board contemplated production of buses in Sri Lanka in collaboration with FIAT. With the change of Government in 1965, the CTB opted for a deal with British Leyland.

In 1973, entrepreneur Upali Wijewardena's Upali Motor Company began assembly of the so-called 'Upali-FIAT' 128. Production ended with the introduction of the open-market economy in 1978.

North Korea[link]

The North Korean car manufacturer and dealer Pyeonghwa Motors assembles two Fiat models under licence since 2002: Hwiparam  (whistle) – based on the Fiat Siena, Bbeokgugi (owl) – based on the Fiat Doblò.

See also[link]

	Italy portal
	Companies portal
	Cars portal

• Automotive industry
• Automotive industry crisis of 2008–2009
• List of aircraft engines
• List of Italian companies
• Neckar
• Simca

References[link]

External links[link]

Wikimedia Commons has media related to: Fiat

• Official website

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Coordinates: 45°01′57″N 7°40′01″E / 45.032580°N 7.666934°E / 45.032580; 7.666934

Ron Paul
Member of the U.S. House of Representatives from Texas's 14th district
Incumbent
Assumed office January 3, 1997
Preceded by	Greg Laughlin
Member of the U.S. House of Representatives from Texas's 22nd district
In office January 3, 1979 – January 3, 1985
Preceded by	Robert Gammage
Succeeded by	Tom DeLay
In office April 3, 1976 – January 3, 1977
Preceded by	Robert Casey
Succeeded by	Robert Gammage
Personal details
Born	Ronald Ernest Paul (1935-08-20) August 20, 1935 (age 76) Pittsburgh, Pennsylvania, U.S.
Political party	Republican Party (1976–1988, 1988–present)
Other political affiliations	Libertarian Party (1988 election)
Spouse(s)	Carol Wells
Children	Ronnie Lori Rand Robert Joy
Alma mater	Gettysburg College (B.S.) Duke University (M.D.)
Religion	Southern Baptist
Signature
Website	Congressional website Campaign website
Military service
Service/branch	United States Air Force Texas Air National Guard
Years of service	1963–1965 1965–1968
Rank	Captain[1]
This article is part of a series about Ron Paul 2012 presidential campaign 2008 presidential campaign 1988 presidential campaign Political positions · Electoral history List of legislation sponsored by Ron Paul Ron Paul newsletters Ron Paul bibliography

Ronald Ernest "Ron" Paul (born August 20, 1935) is an American politician who has been the U.S. Representative for Texas's 14th congressional district, which includes Galveston, since 1997, and a three-time candidate for President of the United States, as a Libertarian in 1988 and as a Republican in 2008 and currently 2012. He is an outspoken critic of American foreign and monetary policies, including the Military–industrial complex and the Federal Reserve, and is known for his libertarian-leaning views, often differing from his own party on certain issues.

A native of Pittsburgh, Pennsylvania, Paul is a graduate of Gettysburg College and Duke University School of Medicine, where he earned his medical degree. He served as a medical officer in the United States Air Force from 1963 until 1968. He worked as an obstetrician-gynecologist from the 1960s to the 1980s, delivering more than 4,000 babies. He became the first Representative in history to serve concurrently with a child in the Senate when his son Rand Paul was elected to the United States Senate for Kentucky in 2010.^[2]

Ron Paul has been an active writer and publisher since the late 1970s, when he created the first of several newsletters bearing his name. He has published many books, beginning with The Case for Gold (1982) and including Liberty Defined: 50 Essential Issues That Affect Our Freedom (2011), End The Fed (2009), The Revolution: A Manifesto (2008), Pillars of Prosperity (2008), and A Foreign Policy of Freedom: Peace, Commerce, and Honest Friendship (2007). Paul has been characterized as the "intellectual godfather" of the Tea Party movement.^[3][4]

On July 12, 2011, Paul announced that he would forego seeking another term in Congress in order to focus on his presidential bid.^[5] On May 14, 2012, Paul announced that he would not be competing in any other Presidential primaries, though he is still competing for delegates in states where the primary election have already been held.^[6]

Early life, education, and medical career[link]

Ronald Ernest Paul was born on August 20, 1935, in Pittsburgh,^[7] the son of Howard Caspar Paul, who ran a small dairy company, and Margaret (née Dumont) Paul. His paternal great-grandparents emigrated from Germany, and his mother was of German and Irish ancestry.^[8][9]

As a junior at suburban Dormont High School, he was the 220-yard dash state champion.^[10] He graduated from Gettysburg College with a B.S. degree in Biology in 1957.^[10]

Paul earned a Doctor of Medicine degree from Duke University's School of Medicine in 1961, and completed his medical internship at the Henry Ford Hospital in Detroit and his residency in obstetrics and gynecology at Magee-Womens Hospital in Pittsburgh.^[11] Paul served as a flight surgeon in the United States Air Force from 1963 to 1965 and then in the United States Air National Guard from 1965 to 1968.^[12]

Paul and his wife then relocated to Texas, where he began a private practice in obstetrics and gynecology.^[13] He refused to accept Medicaid or Medicare payments, but routinely lowered fees for patients who could not afford to pay.^[14][15]

Early congressional career (1976–1985)[link]

While still a medical resident in the 1960s, Paul was influenced by Friedrich Hayek's The Road to Serfdom, which caused him to read many publications by Ludwig von Mises and Ayn Rand. He came to know economists Hans Sennholz and Murray Rothbard well, and credits to them his interest in the study of economics.^[16]

When President Richard Nixon "closed the gold window" by ending American participation in the Bretton Woods System, thus ending U.S. dollar's loose association with gold^[16] on August 15, 1971, Paul decided to enter politics^[17] and became a Republican candidate for the United States Congress.^[18]

Elections[link]

In 1974, incumbent Robert R. Casey defeated him for the 22nd district. President Gerald Ford later appointed Casey to direct the Federal Maritime Commission, and Paul won an April 1976 special election to the vacant office.^[19] Paul lost the next regular election to Democrat Robert Gammage by fewer than 300 votes (0.2%), but defeated Gammage in a 1978 rematch, and was reelected in 1980 and 1982.^[20] Gammage underestimated Paul's popularity among local mothers: "I had real difficulty down in Brazoria County, where he practiced, because he'd delivered half the babies in the county. There were only two obstetricians in the county, and the other one was his partner."^[21]

Tenure[link]

Paul has served in Congress three different periods: first from 1976 to 1977, after he won a special election, then from 1979 to 1985, and finally since 1997.

In his early years, Paul served on the House Banking Committee, where he blamed the Federal Reserve for inflation and spoke against the banking mismanagement that resulted in the savings and loan crisis.^[22][8] Paul argued for a return to the gold standard maintained by the US from 1873-1933, and with Senator Jesse Helms convinced the Congress to study the issue.^[16] He spoke against the reinstatement of registration for the military draft in 1980, in opposition to President Jimmy Carter and the majority of his fellow Republican members of Congress.^[23]

During his first term, Paul founded the Foundation for Rational Economics and Education (FREE), a non-profit "think tank" dedicated to promoting principles of limited government and free-market economics.^[24]

Paul proposed term-limit legislation multiple times, while himself serving four terms in the House of Representatives.^[23] In 1984, he decided to retire from the House in order to run for the U.S. Senate, complaining in his House farewell address that "Special interests have replaced the concern that the Founders had for general welfare.... It's difficult for one who loves true liberty and utterly detests the power of the state to come to Washington for a period of time and not leave a true cynic."^[25][26] (On Paul's departure from the House, his congressional seat was assumed by former state representative Tom DeLay, who would eventually become Speaker of the House.)^[27]

Committee assignments[link]

• House Banking Committee

1984 U.S. Senate election[link]

In 1984, Paul campaigned for the U.S. Senate, but lost the Republican primary to Phil Gramm, who had switched parties the previous year from Democrat to Republican.^[28] Another candidate of the senatorial primary was Henry Grover, a conservative former state legislator who had lost the 1972 gubernatorial general election to the Democrat Dolph Briscoe, Jr.

Inter-congressional years[link]

1985–1997[link]

Following the loss of the 1984 senate race, Paul returned to his obstetrics practice and took part in a number of other business ventures.^[8][29] Along with his former congressional chief of staff, Lew Rockwell, Paul founded a for-profit enterprise, Ron Paul & Associates, Inc. (RP&A) in 1984, with Paul serving as president, Rockwell as vice president, Paul's wife Carol as secretary, and daughter Lori Pyeatt as treasurer.^[30] The company published a variety of political and investment-oriented newsletters including Ron Paul Freedom Report and Ron Paul Survival Report, and by 1993 was generating revenues in excess of $900,000.^[31][32]