preview

The Above Chronological Reconstruction : Chrysler For Using Its Platforms For Producing Of Fuel Efficient Cars

Better Essays

The above chronological reconstruction reveals that Fiat would offer licenses to Chrysler for using its platforms for producing of fuel efficient cars, engines, components, and transmissions in Chrysler’s plants. Moreover, both the companies will also have access sharing their joint distribution networks. On the common ground, both the companies will have opportunities to produce small cars and premium priced cars efficiently; will have improved customer services, stronger management expertises, motivational leadership like Marchionne, and will have increased efficiency. Both the firms will have lead production capacity, will achieve stronger R&D capabilities and abilities, share their expertises on fuel efficiency management, and will have efficient structure and controlling systems.

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

Get Access