Pininfarina SpA, a well-known developer and manufacturer of specialty vehicles for major car companies have traditionally competed on the flexibility of the highly skilled labor force and production design, and low level of automation. However, the European car market is under threat shake. Now, in April 1996, Renato Bertrani, director of operations, to decide whether to accept the offer from Mitsubishi to become the exclusive European manufacturer Pajero, SUV. That was more than double production of Pininfarina and relieve pressure to replace the models currently in production. However, the landing order with the existing strategy of production is poor, and major changes in facilities and equipment, as well as people and systems is required. The fact is suitable for classroom use an input or to apply basic concepts of operations in strategy or operations, to discuss opportunities and strategies with managers. "Hide
by Neil Jones Source: Richard Ivey School of Business Foundation 22 pages. Publication Date: 02 Oct 1997. Prod. #: 98D005-PDF-ENG