The Alliance Of Fiat And Chrysler

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The alliance between Fiat and Chrysler has been beneficial. I however don’t feel it fixes all of Chrysler’s problems but has been vital for its survival in the automobile industry. The alliance allowed Fiat an entry into the America. Fiat gives Chrysler access to its available technology; however will not pay any money for the stake. Fiat had addressed the public, saying it wanted a place to produce its automobiles in North America for its Alfa Romeo brand. I think it is essential that the alliance had to take place for Chrysler in order for it to survive in the automotive industry. The automobile giant has taken 3rd place domestically for the last several decades with GM and Ford leading the competition. In order for Chrysler to remain…show more content…
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
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