Automotive Industry and Fiat Essay

The Fiat Auto acquisition of Chrysler occurred in 2014, which turned Chrysler into an Italian automobile manufacturer (Abrams, 2014, para. 1). By combining these two firms one automaker now have strong ties to the American and Italian auto industry. By Fiat gaining Chrysler’s reputable name it can easily penetrate the American market. This why the acquisition between Fiat Auto and Chrysler can be seen as a growth strategy. Fiat now competes in a large global market, which subjects the firm to many different external environments. The General Enviornment consist of factors that affect every industry, for example taxation. A firm that operates in the auto industry and one that operates in healthcare industry are both going to be subject to government taxation and affect by it. In order to work efficiently and eliminate the threat of general enviornment risk the firm must use a strategy of including these risks in their work process. For example, if Fiat operations in the United States (U.S.) have to follow the U.S. Department of Labor regulations and pay any employee that works over forty hours in a workweek, overtime pay (2015, para.1). In order to reduce the cost associated with paying overtime and keep the budget in line, Fiat might consider hiring in part-time help during its anticipated high volume periods. This will keep production costs low and allow for a larger margin of profit.

Mergers and acquisition plays an important role in survival/vitalization of a corporation in today’s market. It continues to be a breakthrough strategy for improving innovation of a company’s product or services, market share, share price etc.

A recent article posted on www.driving.ca, (LeBlanc, 2016), showed that of the top ten selling vehicles in the world for 2015, only three were American. Those three vehicles were the Ford F-Series (3rd place with 920,172 sold), the Ford Focus (4th place, with 826,221 sold), and the Chevrolet Silverado (9th place with 669,683 vehicles sold). As Hanne Keiling pointed out in her article on www.zebra.com (Keiling,2015), part of the challenge American car manufacturers face is a perception of

1. According to a major economics consulting firms, Fiat`s ¨South American operations are the jewel in the Italian company`s global operations¨. Fiat has plants in Brazil and Argentina, and Brazil is the biggest market, well ahead of its home-country market. In 2011, with the Chrysler venture taking up more and more of the firm`s attention – and as European sales suffered a steep decline – rumors began to circulate that Marchionne might move Fiat headquarters from Italy to the United States. Discuss Fiat´s takeover of Chrysler as part of strategy to transform itself from international business into a multinational or global business

Beyond planning, cutting costs, globalization these automakers need leadership. In the long run we may see new technologies that improve the American auto industry’s power but for now what the industry is a leadership. In recent months ford hired a number of new executives to head key areas related to North American operations, such as product development, marketing, engineering and manufacturing. GM has done the same. One person shaking things up at GM is their newest director, Jerome York. The 67-year-old former auto executive has helped engineer turnarounds at Chrysler and International Business Machines Corp. He has been going over financial statements, seeking new engines and transmissions, and has even met with GM 's labor-relations executives to deal with the tense negotiations with the United Auto Workers, which is another ongoing problem for the company. Outside directors are increasingly looking to him to set the tone and agenda (The Wall Street Journal, 5/1/2006). That is what GM needs, leadership that understands the automobile business and is willing to fight for survival.

The American Auto Industry began in the late 1800 's and grew to be one of the largest of it 's kind in the world. The industry also encompasses many global automobile and auto parts manufacturers across the country. Production rise and fall over the past decade has dropped the American Automobile Industry into the number two spot in the global market just behind China. The Big Three,comprised of General Motors, Ford Motor Company, and FCA US(formally known as Chrysler), were the primary owners of most of the manufacturing facilities in the United States.

Issues investigated in this report will be discussed neutrally and objectively. However, there are still numbers of limitations in this report due to many factors. First of all is the biasness of the information collected from the interview of employees in the company. These information may not be neutral and trustworthy; or even misleading. Also, lacking of time is another limitation of this report. Since this consulting report is conducted within a limited time, the consultant cannot address all issues but major points preventing the merger goes smoothly. In addition, financial issues, which can also be a factor

Volkswagen (VW); Market Entry Strategy; Foreign Direct investment (FDI); China’s car industry; Shanghai Volkswagen; Joint Venture.

This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.

have a lower fuel efficiency. Americans are also behind the rest of the world in fuel

The housing industry isn’t the only American business that has gone through withdrawals in the last fifteen years. In 2008, the automotive industry hit a critical point when the United States government was forced to bail out General Motors and Chrysler. However, this wasn’t the first time the automotive industry had struggled in this nation. The years following the United States’ involvement in the Vietnam War saw many American automotive companies losing their profits. As with any business, the car companies fought to make it through several United States recessions which greatly reduced their income. An article by Business Insider tells us that as America fought through the Gulf War in 1991 and the Iraq War from 2001-2003, many

For Fiat, this merger would offer opportunities to sell technologies that have brought about significant investments, and would have access to the world’s largest auto market by launching brand like Alfa Romeo and Fiat 500. Moreover, Fiat would have option to buy further 20% stakes of Chrysler after twelve months on top of the initial thirty-five percent stake in Chrysler. This would open the door of globalisation in the USA, couple of times tried and then ceased by the firm in the 2nd half of 20th century. Again, Fiat is acknowledged as a small company compared to other global players and the company is characterised by high structural costs and low utilisation of its production capacity

The two organizations that are selected for the process of merger and/or acquisition (M&A) are Chrysler and General Motors. This proposed merger dates back to the year 2008, when the United States economy was in a far different state then the present day. The Great Recession was beginning to

In 2009, Chrysler and General Motors has filed for bankruptcy protection. As part of the reconstruction process the automobile company Fiat merged with Chrysler. Because of the restructuring proceeding, almost 800 dealerships had to be closed, employees’ wages were slashed and pensions for new hires were cut. The reorganization of the two failing companies resulted in lowered variable and fixed costs at a disadvantage to its creditors, employees, dealers, and management. The new management set out to improve the culture of

Foreign direct investment has many forms. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra-company loans".