The Merger Between American Car Manufacturer Chrysler And Its Foreign Counterpart

Despite some drawbacks, the alliance has worked well, and has been beneficial for Chrysler and Fiat. The growth and survival of both companies had faced problems in the areas of technology and quality standards. Chrysler needed the alliance for survival due to its bankruptcy position and conditions of bailout. It also needed a partner to bring innovation, increased R&D opportunities, low cost technology and access to European markets. Fiat wanted to reenter the North American market and needed access and distribution through an established manufacturer that knew the market, and had the technology available; which would be possible through a strategic

cars under the Chrysler name to be sold in the United States. This led to a rise

Though Ford, Dodge, and Chevrolet had managed to make cars affordable a new problem arose, and that was who can stay at the top of the automobile business? Though we’ll never know exactly when Ford’s and Dodge’s rivalry will end, we do know they will keep making some nice

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.

Today Chrysler is the ideal American brand. Through marketing efforts and engineering innovation, Chrysler continues to stand for style, quality, and affordability. In 2015, Chrysler designed the Chrysler 200 from the ground up which featured high quality design both on the interior and exterior (This is Chrysler, 2017). Mr. Marchionne delivered his promise to turn Chrysler around through changing the workflow and the organizational

The government also required Chrysler to merge with Fiat, forcing them to set new auto efficiency standards so as to become more competitive with Japanese and German auto makers (Amadeo, 2016).

Prior to Sergio Marchionne’s arrival, it appeared Chrysler Group LLC, organizational culture consisted of reacting “to falling sales by slashing prices” (Kreitner and Kinicki, 2013). Due to reduced sales volume, Chrysler had experienced major financial issues, including bankruptcy reorganization. The observable artifacts that I would suspect prior to Marchionne’s arrival would be massive advertisements endorsing Chrysler rebates, vehicle discounts, and slashed prices. After Marchionne got upset about the sales team “giving away margin”, he had to shake up the organization culture and transform the company’s way of thinking. Chrysler had to do something if it was ever going to get back to a profitable state.

GM and Ford team up again, but there are other partnerships between automotive rivals to consider.

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

Internal competition to Fiat come from the "big Three", Ford, GM, and Chrysler, whilst external competition comes from makers such as Toyota, Honda, and Hyundai. Since Fiat will also be using the Alfa Romeo Giulietta model it will also be faced with competition from other manufacturers of that model that included Nissan, Mazda, Volkswagen, BMW, Audi, and Mercedes . The competition will rest on factors such as size of vehicle, fuel economy, seating, engine, and price with safety being a primary factor for many families.

It has made its name in the global market and has given a good competition to other companies in automobile sector.

In the Fiat’s Group it is noticed a high impact turnaround, the re-launch of the company had been made possible by the identification and implementation of a very clear strategic choices which had a significant effect on the firm’s business model in relation to its competitors. The positive aspects of their strategy is the risk reduction due to the diversification of the Group’s business, which in turnaround process lower

In align with the mission “Partnering with our customers to make sure that they succeed”, they have established a 50-50 joint venture with Tata motors, India’s largest automobile manufacturer and their partnered customer.

The two companies plan to form a joint venture to develop small cars for the global market.

In 1993, merger talks finally broke down between Renault and Volvo. A merger between the two companies had seemed the inevitable consequence of a number of years of collaboration and the plans seemed well set.