Chrysler in Trouble
Executive Summary
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 based company Fiat leaving the United States in the 1980s. American based firm Chrysler had to deal with sales drops and lack of demand. An alliance between both firms could potentially increase their customer base and future profits. This could be a very lucrative business venture for both firms if successful.
Chrysler an American corporation has held a strong position in the automobile industry in the earlier 1900s. Fiat an Italian corporation has one of the strongest corporations in Italy. Among the three most substantial United States automobile makers, Chrysler is the smallest one. This means that Chrysler’s stand in the automobile market needs much improvement. With the vast growing nature of the United States and international automakers, Chrysler has to improve their performance and appeal to even compete at their level.
Chrysler filed for bankruptcy protection under section 364 of chapter 11 of the US bankruptcy code. Chrysler announced that it would establish a global strategic alliance with Fiat. CEO of Fiat Sergio Marchionne will take over as presidency of Chrysler as well. People want to know how the new management will not only affect the corporation but also the stakeholders that have invested in both companies.
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 based company Fiat leaving the United States in the 1980s. American based firm Chrysler had to deal with sales drops and lack of demand. An alliance between both firms could potentially increase their customer base and future profits. This could be a very lucrative business venture for both firms if successful.
Chrysler an American corporation has held a strong position in the automobile industry in the earlier 1900s. Fiat an Italian corporation has one of the strongest corporations in Italy. Among the three most substantial United States automobile makers, Chrysler is the smallest one. This means that Chrysler’s stand in the automobile market needs much improvement. With the vast growing nature of the United States and international automakers, Chrysler has to improve their performance and appeal to even compete at their level.
Chrysler filed for bankruptcy protection under section 364 of chapter 11 of the US bankruptcy code. Chrysler announced that it would establish a global strategic alliance with Fiat. CEO of Fiat Sergio Marchionne will take over as presidency of Chrysler as well. People want to know how the new management will not only affect the corporation but also the stakeholders that have invested in both companies.
References: * Korzeniewski, Jeremy. "Chrysler Restructuring Plan Places Heavy Emphasis on Hopeful Fiat Models." AutoblogGreen. 18 Feb. 2009. Web. 30 Oct. 2011. <http://green.autoblog.com/gallery/chrysler-restructuring-slides-with-help-from-fiat/1369856/>. * "Chrysler Blog." Chrysler Group LLC: Chrysler Corporate Blog - Dodge, Chrysler, Jeep, Chrysler Financial, Mopar, GEM. Chrysler, 16 Mar. 2009. Web. 25 Oct. 2011. <http://blog.chryslerllc.com/blog.do?p=entry>. * ICMR:Cenrter for Management Research Fiat –Chrysler Case Study * Lasserre, Philippe. Global Strategic Management. 2nd ed. Basingstoke [England: Palgrave Macmillan, 2007. Print. * Ciferri, Luca & Wernle, Bradford. (2009, November 23). How Chrysler, Fiat design teams splits the world. Crain Communications, Inc. Retrieved June 30, 2011. * David, Kiley & Matlack, Carol. (2009, April 20). Fiat: On the road back to America. BusinessWeek. Retrieved July 1st 2011, from Business Source Complete database.