How Chrysler handled the 2007 recession in regard to their international strategies

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Due to the devastating economic crisis in 2008, American automobile industry suffered a disastrous period. In particular, the sales volume of Chrysler went down 30.3% compared to 2007. Without doubt, Chrysler had the most terrible performance among the three giant native auto companies in North American while its market share declined to about 10%. Meanwhile, the cost of Chrysler was related high, which led Chrysler has less competitiveness. In addition, Chrysler also had heavy liabilities, and it made Chrysler’s financial situation worse.
In order to save itself, Chrysler was attempting to seek restructure opportunities. In August and October 2008, Chrysler negotiated with Nissan and General Motors respectively. However, as the poor performance of General Motors in the crisis, the negotiation didn’t proceed then. At the end of 2008, Fiat and Chrysler began to discuss the merger.
On 19th December 2009, Chrysler closed all the manufacture operation to reduce its cost as well as to make its stock meet the market demand. At the same time, Chrysler laid off 32 thousand employees to reduce its expenditure.
Also, Chrysler had asked US government for help. By the end of 2008, US government provided $4 billion to rescue this auto giant. Then the US government pressurized the creditors (the debt valued $6.9 billion) made significant concessions. And four main loan institution with 70% liability agreed settle these debts with $2 billion, which paved the way for a radical

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