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Chrysler was struggling, recently and historically and needs the support of a stable company. Since Marchionne took over leadership of Fiat in 2004, Fiat has been just that: stable…and rising. As a condition of the 2009 bailout by the US government, Chrysler was required to restructure and seek “partnership with an auto manufacturer for future survival” (Anwar, 2009). The partnership will substantially benefit both parties as each brings assets to the table of which the other is in need: Chrysler has access and networks in the North American market and the large car, SUV and truck brands and Fiat has the European market access with the small car technology. If the corporate and brand integration can be achieved smoothly, then the success of the strategic alliance will be profound and Chrysler will again see itself competing strongly with other US manufacturers. However, if Fiat and Chrysler cannot coexist and pull each other up, Chrysler will find itself again spiraling down and Fiat will be again running from the North American automotive
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Both were looking for an alliance that could benefit both and each company brought an expertise and success with it in an area in which the other lacked. The partnership was nearly ideal as both companies were staged to benefit greatly from the other’s established successes. It would be fair to say that the US government was the driving catalyst for this alliance. While the conditions were conducive to a partnership between the two, it was the stipulation of the government bailout that forced Chrysler’s hand into a definite partnership after its difficult years following the release from …show more content…
Despite Fiat’s recent success in the 2000s, they were limited to their niche in the small car market and Chrysler provided exactly the diversification that they needed. While it is still in the early stages of the partnership, it seems fair to say that things are looking up for both companies and the future looks bright. It is good to finally be able to say the same for the auto industry as a whole. The recent crisis was difficult for all firms, foreign and domestic, but has shed light onto the greatest weaknesses of each and every manufacturer. This equates to a future and global auto industry that will be innovative, but with high quality and continued efforts to cut costs and improve environmental and economic standards. The Chrysler-Fiat strategic alliance is not the first of its kind and it will certainly not be the last. The analysts are seemingly correct to assume the number of players in the game will be much less in the future auto industry as alliances, mergers, joint ventures and acquisitions continue to change the battlefield of the global automotive industry. References
Deresky, H. (2011) International Management, Managing Across Borders and Cultures. Upper Saddle River, NJ: Pearson Prentice Hall.
Anwar, S. T. (2009) The 2009 Chrysler-Fiat Strategic Alliance. West Texas A&M University. Exclusively for International Management,
Both were looking for an alliance that could benefit both and each company brought an expertise and success with it in an area in which the other lacked. The partnership was nearly ideal as both companies were staged to benefit greatly from the other’s established successes. It would be fair to say that the US government was the driving catalyst for this alliance. While the conditions were conducive to a partnership between the two, it was the stipulation of the government bailout that forced Chrysler’s hand into a definite partnership after its difficult years following the release from …show more content…
Despite Fiat’s recent success in the 2000s, they were limited to their niche in the small car market and Chrysler provided exactly the diversification that they needed. While it is still in the early stages of the partnership, it seems fair to say that things are looking up for both companies and the future looks bright. It is good to finally be able to say the same for the auto industry as a whole. The recent crisis was difficult for all firms, foreign and domestic, but has shed light onto the greatest weaknesses of each and every manufacturer. This equates to a future and global auto industry that will be innovative, but with high quality and continued efforts to cut costs and improve environmental and economic standards. The Chrysler-Fiat strategic alliance is not the first of its kind and it will certainly not be the last. The analysts are seemingly correct to assume the number of players in the game will be much less in the future auto industry as alliances, mergers, joint ventures and acquisitions continue to change the battlefield of the global automotive industry. References
Deresky, H. (2011) International Management, Managing Across Borders and Cultures. Upper Saddle River, NJ: Pearson Prentice Hall.
Anwar, S. T. (2009) The 2009 Chrysler-Fiat Strategic Alliance. West Texas A&M University. Exclusively for International Management,