Figure 1.-- America before the automobile had becomes the world's greatest industrial power. Henty Fird nd the Model-T Ford resulted in American eclipsing all other industrial powers. At the time of Wotrld War II, most of the cars and trucks buit in the world were built in America. After the War this continued and we massive huge highway behemoths dripping with chrome, like the 1952 Buick Rodmaster here. The photo was taken in Varazze, a tourist resort near Genoa, on May 6, 1955. A local young boy poses sitting on a Buick Roadmaster. It belonged to the tourist Mirko Ferroli, a professional photographer. At the time Italy and other European countries were building sizeable autmobile industries which were playing a major role in the European Economic Miracles that were propelling capitalist Western Europe ahead of Communist Eastern Europe. Click on the image to see more of the cafe in the background and its patrons. Cars like the Buick here still made an impression in Italian villages.

The immediate post-War economic reconstruction was followed by spectacular economic growth (1950-63). Increases in the gross domestic product (GDP) totaled an impressive 5.9 percent annually, peaking at aphenomenal 8.3 percent (1961). Italians refer to the 1958-63 period as Italy's Economic Miracle with phenomenal industrial expansion. The growth in Italian industrial output peaked at over 10 percent annually at this time. Only Japan and West Germany reported higher numbers. And Italy experience practically full employment, very unusual in Italian economic history. An important part of Italy's phenomenal success was the automobile industrty. Just as it had propelled American ecomomic growth (1910s-20s), it propelled Europe's economic growth after World War II. Italy had devloped a small auto industry after World War I, but the failure to develop a major indusdtry was a factor in the country's poor performance in the War. After the War, Italy began building one of the world's most important car industries. Italy was devestated by World War II, but by 1950 production was double the pre-War peak. And this was just the bginning. Huge increases followed making Italy a major manufcturer. And by 1970 production was nearing 2 million vehicles. Here European integration was playing an important role. In addition, FIAT paticipated in many joint ventures in which FIAT vehicles were produced under contract: Lada in the Soviet Union, Zastava and Yugo in Yugoslavia, FSO (Polski Fiat) in Poland and SEAT (now owened by Volkswagen) in Spain. FIAT's success in large part was achieved success with proiduciung small cars Italians and other Euyropeans could aford.. There was work on a range of innovation, including front-wheel drive, hatchbacks, and small sizes. FIAT's success was assisted by the growing affluenc of Italian consumers, especially the workers and growing middle class. Italy in terms of population had been a major European country since unification--but not in economic power. Poverty had limited the market for cars. Two upmarket brands (Alfa Romeo and Lancia) achived some success. The Italian motor industry was seen as having a talent for innovative design. The Uno supermini (1983) and Tipo family hatchback (1988) wer both succsses. The industry peaked at 2.2 million (1990). Since then the industry has decline somewhat, but nomally is was well above 1 million. Production dipped below 1 million (2009-14). The Uno was one of the most popular cars in Europe throughout its production years. The Uno's replacement, the Punto, was launched (1993) and also prived successful. FIAR continued to be an imprtant manufacturer, respected for design and technology. It has foreign invrestments investsments, including Chrysler in America (2014). The Fiat 500 city car introduced (2007) has been its greatesttt success, but is is manufactured in Poland and Mexico, rather than in Italy.

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Created: 9:06 PM 2/20/2022
Last updated: 9:06 PM 2/20/2022