'A tale of two dynasties' (MT January) illustrates the point that the car business is complex and difficult and that fortunes can change in a relatively short period of time. We need go back only to the mid '90s to see BMW in trouble with Rover, and the '80s to see Fiat as the leading producer in Europe.
The defining point in manufacturers' fortunes seems to be when they turn from producing great cars towards so-called strategies for profitability or market dominance. BMW did this with Rover, and Fiat, until recently, has neglected its product range in favour of diversification.
The history of the motor industry is alive with products that saved the company, from the Volkswagen Golf to the Ford F150 truck. The guardians of the dynasties involved would do well to remember this simple truism.
Richard Gane
PA Consulting Group
