Crisis in the Automotive Industry and Territorial Development: Fiat and Automotive Suppliers in Southern Italy

The chapter deals with local production systems in which there are automotive assembly plants. It focuses on the effects that the strategic choices of location and allocation of production among assembly plants have on local development. The effects on the supply chain – the part of suppliers located in the regional economy – are analysed. The disciplinary approach used is the one of economic sociology, in particular the approach of comparative political economy. The analytical categories used are taken from studies of local produc- tion systems and governance of local economies. The paper presents the results of a case study related to the Fiat assembly plants and manufacturing suppliers in Southern Italy. The empirical study has analysed the strategic choices of Fiat and the effects they have had on the local supply chain and territorial develop- ment. The analysis focuses in particular on the transformation of the supply chain of Fiat in Southern Italy (qualitative and quantitative dimension) as a result of the economic crisis and Fiat’s strategy in the period 2010-2012. The analytical dimensions that are considered are: aspects of production, employment and labour relations, innovation, institutions and local governance.