Modern Monopolization of Italian Capital in Motor Industry’s Market*
The phenomenon of monopolization on a scale of national economy is periodical and well-famous occurrence. The issue, that is especially interested in the field of monopolized capital research, is how the phenomenon characterizes economic condition of a country.
We know that open monopolization is absent in the market of developed capitalistic countries. Other phenomenon meets i.e. collusion of leading companies of some economic sector to please realization hyper profit and extrusion of less high-powered competitors. Even mighty holding Microsoft was openly exposed in the speculation which resembled signs of monopolization of soft market very much.
But monopolization is open and hidden that is economically hidden in imitation of real triumph of one company over others and occupation about 90 per cents of all the market of the national or regional economic sector with help of administrative resource. In the way, monopolization can be absent de jure but it is de facto.
Obvious case of such quasi-monopolization of national economic sector is observed us in Italy. In the paper “Analysis of the Development Evolution of Big Italian Monopolistic Capital during the Last 60 Years” from 2007 the author of the article analyzed this phenomenon on example of energetic holding ENI that takes control 95 per cents of all sector. The script of administrative monopolization of a market was successfully taken and copied by Russian businessmen of government concerning development of the concern of Gazprom.
Like situation is in Italian motor industry the last 40 years that can also be some manual for development of the national motor industry of Russia.
The history of the FIAT started from small enterprise of Giovanni Batista Ceirano, who created his car model by support of business quarters, in 1899. The enterprise together with the car model was bought the company of the FIAT, leading Mr. Anielli, 8 years later. Designers placed new engine in the car model and the company started to manufacture it. In the beginning, luxurious cars produced in limited amount only. A car model for mass appeared in a market in 1912. The model of Tipo 508 Ballila was produced in 1930s. It was the first car that produced in Czechoslovakia, Poland and France under licence. In 1950s the FIAT acquired a reputation of the company producing safe economy cars for all Europe.
Real revolution of the company was in the last 40 years. The concern made double resolves as a matter of fact using administrative resource and big income from the European production of cars. Gradually it took up consumer Italian companies Lancia and Alfa Romeo and later exclusive motor companies Ferrari and Maserati. From one standpoint, no one motor company remained besides FIAT that is typical monopolization of some economic sector. From other standpoint, the leaders of the concern realized absorption but kept company brands and design departments therefore the FIAT really rescued Italian motor industry from destruction because Lancia and Alfa Romeo was ready to disappear in that time.
Owing to leading role of the concern structures, the Italian stood on conveyor and sold more than 1.6 million modern cars in various motor works of Europe and Asia.
Russian motor industry resembles the situation in Italy of 1970s. There is the motor giant of Avtovaz and some small motor companies in Russia. Having high-powered administrative and financial resource, perhaps it is already time to take great experience of the FIAT and to use investment aids to consolidation of country’s resources.
Alexander G. Buychik
Associate Professor
Ph.D. Soc. Sc., Doctor of Economics and Politics
Active member of the Academy Geopolitical Problems
Associate Professor
Ph.D. Soc. Sc., Doctor of Economics and Politics
Active member of the Academy Geopolitical Problems
* The article is ipublished in the journal “Bulletin of the Academy of Encyclopaedic Sciences” (N4, 2012) of full professor G.N. Malyshev, Chelyabinsk, Russia.