The 2009 Chrysler-Fiat Strategic Alliance

In: Business and Management

Submitted By ashreycook13
Words 550
Pages 3
Ashley Cook
MGT 480
March 25, 2013
Case 7

The 2009 Chrysler-Fiat Strategic Alliance

1. The strategic alliance was defiantly needed. This was important since Chrysler has a tremendous loss in 2008 and had to lay off many of their workers. They were also going bankrupt, so this was the best option to keep them afloat. They could not keep up with the economy and needed to get help from someone. This deal made sense for Fiat, since they could get the company at a low price and re-enter into North America. They also have a good thing going in that fact that they own 21 percent since 2009, then can get it increased to 35 percent this year and eventually might have 51 percent of the company. This was not the most ideal thing for Chrysler, but it was necessary.

2. Chrysler has a brand name in North America, where Fiat lacks the visibility. Fiat has been very successful in Europe, where Chrysler does not have a strong dealer network there. Chrysler finds new markers by developing new range of vehicles. After the merger, Chrysler emerges from the bankruptcy and starts to restructure and Fiat gains a brand in North America and technology from here.

3. Chrysler had always been behind Ford and GM and was known as the “number three.” Since the merger, they were able to gain more in Europe and new technology. As they are still not the number one company they have bettered themselves and are on the rise. The other five companies are still on the rise as well, so Chrysler-Fiat will have to work extra hard to compete with all of the technology, market share and consumer satisfaction.

4. Chrysler’s strength has been in sport utility vehicles, pickup trucks and minivans. We do not know a great deal of Fiat’s degree of interest in these businesses. Nissan has an agreement with Chrysler whereby Nissan is to get a version of the Dodge Ram and Nissan is to…...

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