Case 7 : 2009 Chrysler-Fiat Essay examples

832 Words Mar 1st, 2014 4 Pages
1. While this was not the most ideal situation for Chrysler, I think the alliance with Fiat was a necessity. Chrysler had a tremendous loss in profits, had to lay off many workers, and was going to have to file for bankruptcy. This was a great option to help them stay afloat and get help from an outside source. Obviously for Fiat this was a good move. They did take a risk since Chrysler was going into bankruptcy, but they were able to acquire it for a reasonable price and also help themselves to re-enter into North America with a company that already had a solid market share. Fiat most recently purchased the 41% of Chrysler they did not own. The company is definitely on the upswing and will be able to better compete with GM and Ford. …show more content…
Weaknesses are since they have no presence in the global market, they will have to rely heavily on Fiat in that regards. They also bring a very limited technology and portfolio in small cars and have to continue to rebrand themselves from past history.
Fiat - Strengths of Fiat is they have been reinvigorated in Europe and has become one of the most visible brands of small brand cars in Europe. They have introduced many more models and quality has continuously improved. They also have a solid CEO leadership. Weaknesses are they lack marketing to compete in global markets with other auto manufactures and they have a very limited product portfolio in the global market.
3. In comparison to sales in 2008, Chrysler and Fait were at $59 billion and $83 billion were significantly lower than General Motors, Ford, Volkswagen, and Daimler who were all over $149 billion and Chrysler and Fiat were much lower that Toyota at the top with $230 billion. In overall market share from Table IV, General Motors was still the highest at 19.1% followed by Toyota, and Ford. Chrysler came in fourth ahead of Volkswagen of North America and Fiat does not even compete in the U.S. market. Although everyone did have a drop in percentage change that year. This shows Chrysler still has a strong market share and foothold in North America, but do not have a global presence. Fiat is well

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