The news of the death of
Vittorio Ghidella – one of the Fiat Group’s most
successful CEOs whose decade in charge of Fiat Auto was
quite simply transformational – has been greeted with
much sadness across the Italian car industry and by
enthusiasts worldwide. “Brilliant” is the word used by
many to describe Ghidella, who passed away on March 15
at the age of 80. In almost a decade at the reins of
Fiat’s car division, he oversaw the birth of cars such
as the Fiat Uno, Tipo and Croma, as well as the Lancia
Thema and Y10, and Alfa Romeo 155.
After graduating with
honours from the Politecnico di Torino, Ghidella joined
a graduate programme with wheel bearing manufacturer SKF.
He then moved onto New Holland and a successful stint
took him to the United States. In 1979, Gianni Agnelli
recalled him to Turin to take the helm of Fiat Auto,
which faced waning fortunes after a torrid few years in
the late 1970s, battered by union disputes and
terrorism.
Ghidella’s first task
was to assist the drive of a fightback against the power
of the unions, which was crippling the carmaker with
overstaffing and rampant absenteeism. In the autumn of
1980, Fiat Group boss Cesare Romiti laid off 23,000
workers as part of a daring restructuring strategy and
the company was plunged into a 35-day-long general
strike. However a counter-protest by 40,000 workers and
managers marching through the streets of Turin to demand
the right to return to work broke the unions, and began
their gradual erosion of power.
That set the stage for
Ghidella to revive Fiat Auto's ailing fortunes through
the arrival of a string of new models that achieved much
success in the showrooms, including the phenomenally
popular Fiat Uno. Arriving in 1983 as a replacement for
the aged 127, this model won rave reviews, along with a
slate of awards including the title of 1984 European
Car of the Year, and put Fiat firmly back on a
course to the top. Interestingly, only last year did
Ghidella reveal in more detail, in an interview to
Quattroruote magazine, how the Uno had begun life as
a Lancia project to replace the Autobianchi A112 but,
with the input of Agnelli, was born as a Fiat.
Other huge success
stories for Ghidella included the innovative
first-generation Lancia/Autobianchi Y10, which
eventually wound up replacing another elderly car, the
A112; and the ‘Type 4’ project, which spawned the Fiat
Croma and Lancia Thema, as well as the Alfa Romeo 164 –
launched shortly after Fiat’s takeover of the brand –
and Saab 9000.
In addition to being a
talented engineer who thrived on innovation and
engineering solutions, Ghidella was well aware of the
power of motorsport in improving the image of Fiat’s
brands, and approved significant spending on competition
programs. In particular, Fiat’s efforts at this juncture
centered on rallying and sportscar efforts for Lancia,
which yielded much success and helped the brand recover
from the Beta rust debacle at the turn of the decade.
A characteristic which
made Ghidella popular amongst Fiat workers was his
hands-on input into projects, and he is remembered by
many being seen driving (or pushing) prototype cars at
Mirafiori during every stage of development programmes.
Aside from the model Ferraris on his desk – which
highlighted his passion for the products of his chosen
industry – his office was sparsely-furnished, and
frequently empty; workers often noted he seemed to be
“born” on the assembly line floor.
His final major
project was another key model, the Tipo, which replaced
the Ritmo and was built on a new platform using
all-galvanised body panels and impressive interior
packaging. Like the Uno, it also won the European Car
of the Year title, and formed the basis for more
than a decade of Fiat product development, spawning an
entire family of models across the Fiat, Lancia and Alfa
Romeo brands, ranging from family hatchbacks to sedans,
estates, coupes, convertibles and MPVs. In so doing, it
established the industry standard for ‘platform sharing’
which forms the basis of modern carmaking. Notably,
following the takeover of Alfa Romeo in 1986, Ghidella
also approved the Tipo-based, I.DE.A-styled replacement
for the 75, the 155, as well as ‘Progetto 916’, which
would eventually emerge in 1994 as the GTV/Spider twins.
However, it was his
legendary clashes with Fiat Group Managing Director
Cesare Romiti that eventually brought about Ghidella’s
downfall. Romiti, who had previously been at state
airline Alitalia, had been brought into the fold to put
the industrial conglomerate on a sounder financial
footing and in the early 1980s, while Ghidella focused
on new automobile products to boost the company’s
profitability, the pair were forced to work closely
together to combat the unions’ might. They famously fell
out over the proposals in 1985 to merge Fiat Auto and
Ford Europe, plans that eventually were shelved after
disagreements over who should run the merged entity.
While Romiti wanted the Group to diversify, Ghidella
wanted to focus on the Auto division, which by the time
he departed had risen to being neck-and-neck with VW as
Europe’s number one carmaker, was churning out strong
profits, and had also bought back the stake it had been
forced to sell to Libya’s leader Colonel Gaddafi at the
end of the previous decade. In 1987, the bitter argument
seemed to have been resolved in Ghidella’s favour, as he
and Gianni Agnelli’s brother Umberto were anointed the
successors. However Romiti, a very shrewd and ruthless
businessman, would soon bounce back, and a year later
Gianni swung behind Romiti, with Ghidella resigning –
his post taken by Paolo Cantarella.
After departing from
Fiat, Ghidella, who always lived quietly with his family
and avoided the Turin social scene, successfully focused
on other businesses, including Saurer. Many regard
Ghidella as being the last Fiat CEO who properly
understood the car industry and the need for
class-leading products above all other factors, and one
of the few CEOs who didn’t take their foot right off the
gas when the carmaker’s fortunes went into an upward
curve – an age-old complacency trap that was fallen into
by his successors, Cantarella and Sergio Marchionne.