Eco-112-Gs Final Project

The crisis of Chrysler stemmed from falling sustainability, complacent bureaucracy, and misguided management. Sergio Marchionne (CEO of Fiat) was named CEO of Chrysler June 2009. Two managerial challenges that Mr. Marchionne is facing at Chrysler are managing for both competitive advantage and information technology. Prior to Marchionne taking the reins, rebates were being given by Chrysler per the sales chief Mr. Fong to match the amount given by the government. Once Mr. Marchionne took over, the focus changed from trying to appease the customer through rebates to ensuring quality products and innovative features. Mr. Marchionne's goal was to improve management, return to profitability, and increase market shares. He also restructured the

The paper seeks to determine and understand the economics factors, which affects the decision-making in the purchase of a vehicle. First, interest rate and the cost of financing are a major factor in influencing the purchase decision. The interest rates affect the nature and implications of the loan financing the purchase of the vehicles (Allcott, & Wozny, 2014). It is important for the buyers to assess the nature and implications of interest rates and cost of financing which include the cost of capital in external borrowing of funds to fund the purchase.

In the article, “ Why the Gasoline Engine Isn’t Going Away Anytime Soon,” Joseph B. White writes about the reality of the old school, yet productive ways how the internal-combustion engine is going to stay in the competitive market. While at the same time he describes the change for the industry is coming just at a gradual slow pace. For years environmentalists and energy saving specialists could not accomplish what high oil prices did in just a couple years. Changing the game of auto makers focus to make improvements to their engines. The idea of changing from oil to electricity is possible but there is few chances of it succeeding until the future. The author states that cars powerful enough to serve more than one function are the basic need

Good economy is great for the American motor vehicles so there should be measures that would make sure that the economy is well taken care of in the near future. The PESTEL strategic analysis of the motor vehicle industry indicates an upward direction that is very important for the overall growth in the long run (Vlasic). Mary T. Barra is one of the best managers in the motor vehicle manufacturing because she has managed to make General Motors to be the giant motor vehicle company that it was in the past. The economic concept is very important in this case because it provides an opportunity for a better future so that we can achieve the level of involvement with the stakeholders and the expansion efforts to reach the world market like African countries and the Middle

The American Auto industry has matured over several decades and is one of the best auto industries in the world. However, like any other industry, it is fraught with many environmental challenges that include Political and Regulatory challenges, fierce global competition from other auto manufacturers, rapid advancement of technologies for powering the products in this industry, as well as challenges from stemming from consumer opinions about their products.

For Chrysler’s plan advancement they are planning on discontinuing the Chrysler 200 sedan and Dodge Dart sedan. Instead of shifting their attention to cars they are going to focus on making the Jeeps and Ram pickup trucks better. Since the gas prices have dropped by 2 dollars Americans are selling their cars and are starting to buy crossovers and trucks. If Chrysler Focuses on making the Jeeps and Ram trucks better more people will want to buy them which will bring them in a lot of profit which will make the company thrive.

The aggregate demand for transportation service is portrayed as being inelastic due to its planning being based on demand analysis which supposedly outline a certain level of service that "needs" be maintained. For instance, freight has a highly inelastic demand due to the its rates not dramatically effecting the demand for freight transportation. Therefore, in terms of costs transport demand has a tendency to be inelastic (Dr. Jean-Paul Rodrigue, 2016). On the other hand, demand for an individual mode or carrier is often elastic or price sensitive. Reductions in rates charged by a particular mode will usually result in increases in the volume of freight by that mode, other things being

“Hey Hassan. Want to know why they keep their cars here? Because Chrysler can’t sell their cars.” I joked, laughing idiotically. I nearly hit into a Jeep Grand Cherokee as I was laughing. Thing is, we don’t hate Chrysler, but Hassan and I love to joke about the company. It’s well known in the car community how poorly Chrysler performed right before the 2008-2009 recession, in which Chrysler had to be bought out by Fiat. They’ve been doing great since then producing aesthetically pleasing sedans, coupes, and SUV’s.

In 2013, Detroit shined again, and combined came in higher than its global competitors. Research showed U.S. car companies held 46% of auto sales and this surpassed the competition in Japan, Germany and Korea (Wood, 2014). Detroit automakers were nearly destroyed in 2009 when hit by a crippling recession. The American tax payers bailed the companies out, and they have recently started to show the growth it takes to succeed and be number one. The recession has also forced the American auto industry to become more efficient and competitive. It has overall decreased the number of employees and reduced costs in other ways to protect the company’s well-being and the taxpayer’s investment.

In a present day of global warming, environmental issues, labor unions, and other impacts, the automobile industry is in an era of instability and change. Ford Motor Company has been traditionally considered one of the "Big Three" in the auto industry, but they are not adapting as well as hoped to the changing industry, and will have to strategize to survive in a struggling industry.

Unfortunately for Chrysler, a company that started with debt, by the late 1980s the company would again find itself in financial turmoil forcing a second company restructuring that would lead to the production of more “fuel-efficient vehicles like the Dodge Shadow and Plymouth Sundance (Wheelen & Hunger, 2012, p. 17-2). In 1998, the company would enter into a merger with Daimler-Benz. That merger would last until 2007 when Chrysler was sold to Cerbus Capital Management, which would produce “an 8% growth in sales” in 2007, but eventually fell back into a loss in profit (Wheelen &

Fiat and Chrysler had very different points of strengths and weaknesses before and after the alliance. They both were also in very different circumstances that created varying levels of success domestically as well as internationally. Fiat’s points of strengths include small cars, their diesel engines and transmissions, as well as in exotic cars. Fiat is one of the largest producing car manufacturers in all of Europe, particularly in Italy. Fiat is also the leading seller in Brazil, producing a quarter of the markets cars and light trucks. However, only leading in this country and partially the continent did not satisfy their hunger for global expansion, as international sales were relatively low. The United States was a market that Fiat was ready to re-enter but couldn’t do so effectively without forming an alliance that would allow for the manufacturing of their brand of cars. Fiat aimed to fix its tarnished reputation in the U.S of producing lower quality vehicles relative to its European siblings. Fiat does have strong leadership in their CEO, Sergio Marchionne. Chrysler has always been a step behind GM and Ford in quality and technology in its long history. Surviving without these two elements in this industry is not possible. They were always late to any consumer demands met by its competitors and were in constant economic trouble. Chrysler’s management during previous partnerships was not

The case is intended to have students look at the 2009 Chrysler-Fiat strategic alliance, its current issues, and future viability in the global auto industry. The new landscape of the American auto industry and the role of Fiat is analyzed in the cross-border tie-up. After de-merging with Daimler in 2007, Chrysler did not do well because of the 2008-2009 global financial crisis and its bankruptcy filing. Chrysler’s other problems included its financial constraints and heightened competition in North America. The company had no choice but to look for a partner. During this process, Chrysler explored the possibility of a tie-up

The automobile market is one of the most lucrative markets in the world. They have focused on international expansion since the late 1900s. This market has very successful international companies such as Mercedes-Benz, Lexis, Hyundai, Chrysler, Camry, Fiat, etc. All of these firms have held a position in the automobile industry. Even in economic hardships when demand for automobiles was decreased, the market did not faze them. Two firms prominent in this industry are Chrysler and Fiat which have both held successful positions in the late 1900s. Due to decreased market demand and lackluster products both firms have drastically diminished their market appeal. This has led to decreased profits which have led to European

“The pace of our development and introduction of new and improved vehicles depends on our ability to implement successfully improved technological innovations in design, engineering, and manufacturing, which requires extensive capital investment.” Page 27