Should Fiat shift upmarketed in the second decade of 2000s?

Fiat is one of the leading automobile manufacturers in Europe, though it is not the largest one. Nevertheless, the company has a very strong position in Italian market as well as in Europe and other parts of the world. However, in the 1990s-2000s the company was stumbling through almost permanent crises which struck the company. In such a situation, the development of a new, effective marketing strategy and future policy of the company is needed to improve its current position in the market. In such a context, the shift upmarketed is considered as one of possible solutions of the current problems of the company, though the effectiveness of such a strategy is uncertain.
On analyzing the current situation in the automobile manufacturing industry, it should be said that leading companies tend to decrease the production because of dropping sales rates and decreasing consumption of their products. In such a situation, the decision of Fiat concerning the shift upmarketed can be ineffective because it will definitely increase costs of the production.
In addition, the company will need to spend more funds on the development of new models and their introduction, while the future sales rates are uncertain. Instead, Fiat should focus on the development of existing models of small, fuel-efficient cars which are popular in Europe and are growing more and more popular in the USA and other countries of the world. In such a way, the company can save costs and increase its market share worldwide.
Thus, in conclusion, it should be said that the shift upmarketed is not really prospective for Fiat, at least in a short-run.
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