The new Fiat's establishment of Melfi represents one of the most advanced experiences in Italy as far as technology and busi¬ness organization are concerned. The most important changes are related to: a reduction in the number of grades within the firm hierarchy; working groups flexibility; the wide investment in pro-fessional training; and the existence of an advanced industrial rela-tion system, which includes information and bargaining rights. The essay examines the possibilities of success of the Melfi model of industrial relations and business administration, especially with respect to the characteristics of both the terrítory and the working force in the south of Italy.