Preview

The 2009 Chrysler-Fiat Strategic Alliance

Good Essays
Open Document
Open Document
2357 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The 2009 Chrysler-Fiat Strategic Alliance
The 2009 Chrysler-Fiat Strategic Alliance
Christopher McCarthy
3/11/13

Table of Contents
Introduction.............................................................................................................................3

Summary of the Strategic Alliance................................................................................ .........4

Positives/Negatives..............................................................................................................4-5

Comparison to others in the industry......................................................................................6

Chrysler and Fiat 's Future.......................................................................................................7

Conclusion..............................................................................................................................8

Works Cited............................................................................................................................9

The 2009 Chrysler-Fiat Strategic Alliance was formed in order to not only revive Chrysler back to the auto company it had been in the past, but also to better Fiat as a whole. The case study begins with a lengthy introduction introducing us to both Chrysler and Fiat from their inception to their current states. Following that is an introduction to the terms of the alliance. After some additional research I have here summarized the terms of what would become the Chrysler-Fiat Strategic Alliance:
• Chrysler and Fiat have announced a non-binding strategic alliance to allow Chrysler access to Fiat vehicle and powertrain technologies for the North American market. Resolution of Daimler 's 19.9 percent share of Chrysler Corporation is a prerequisite for this alliance.

• Fiat would at this point offer no cash for the opportunity for


Cited: http://www.nbcnews.com/id/28747620/#.UT4LK4c-uZw http://www.autoblog.com/2009/01/20/breaking-chrysler-and-fiat-announce-partnership/ http://money.cnn.com/2009/06/10/news/companies/chrysler_fiat/index.htm http://www.nytimes.com/2009/01/21/business/21auto.html?pagewanted=all&_r=0
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Fiat Chrysler
    • 2013 Words
    • 6 Pages

    Fiat Chrysler

    Before their merger, Fiat and Chrysler were two comparatively small regional companies overly reliant on just three auto markets—the U.S., Italy and Brazil.…

    • 2013 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    Chrysler Swot Analysis
    • 1012 Words
    • 5 Pages

    Chrysler Swot Analysis

    - New owner Cerberus allows Chrysler to make quicker decisions because they are a private company.- Have a goal to give a return to its investors.- Have successful divisions in Dodge and Jeep.- At Chrysler there in now an emphasis on working fast.- They realize that there is a major problem with the company and are doing everything they can to fix it.- Now have a new Interior Design Studio which was used on the 2009 Dodge Ram.- Are starting to study customer preferences early to limit changes in the design cycle.- Has collaborated with Tata Motors Limited of India. Their all-electric Ace mini truck will be sold through Chryslers Global Electric Motorcars division. - Private ownership means they don't have the statutory requirements of a public company.…

    • 1012 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Chrysler in Trouble
    • 1029 Words
    • 5 Pages

    Chrysler in Trouble

    The company failed to make the merger with Daimler-Benz successful and which caused the company to ask for a Federal loan to help the company restructure. The Government asked for certain requirements to be met before they would receive any money. Under the restructure the company filed for bankruptcy on April 30, 2009. During this process the Chrysler company reached an alliance with Fiat.…

    • 1029 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Case: Sergio Marchionne’s Challenge at Chrysler
    • 600 Words
    • 3 Pages

    Case: Sergio Marchionne’s Challenge at Chrysler

    Chrysler is operated by Fiat. Chrysler has only two models coming into the current market. Chrysler is only producing one-third the rate of Ford, Honda and the Korean automakers and less than half the industry.…

    • 600 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    The Role Of Slavery In Founding Brothers
    • 991 Words
    • 4 Pages

    The Role Of Slavery In Founding Brothers

    As Joseph Ellis describes in his novel Founding Brothers, slavery was the most divisive problem in America. The states were divided not by their difference of size or but whether or not they had slaves. Instead of coming together and considering a compromise the North and the South each began to form the own arguments on the slave issue and began one of the biggest debates in the United States history. The beginning of years of debates came on February 11,1790 when two quaker delegates presented a petition to the House asking for the federal government to to put an end to the African slave trade.…

    • 991 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Fiat - a Troubled European Car Giant
    • 2201 Words
    • 9 Pages

    Fiat - a Troubled European Car Giant

    EUROPEAN STUDIES FIAT: A TROUBLED EUROPEAN CAR GIANT GROUP 3: 1 Q1: What are the underlying problems facing Fiat’s car division? The performance of Fiat – the Italian vehicle manufacturer – has fluctuated drastically between its founding in 1899 and today.…

    • 2201 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Chrysler - Case Study
    • 10402 Words
    • 42 Pages

    Chrysler - Case Study

    In January 1998, Jürgen Schrempp, CEO of Daimler-Benz A.G., approached Chrysler Corporation Chairman and CEO, Robert Eaton, about a possible merger, acquisition, or deep strategic alliance between their two firms. Schrempp argued that: The two companies are a perfect fit of two leaders in their respective markets. Both companies have dedicated and skilled work forces and successful products, but in different markets and different parts of the world. By combining and utilizing each other 's strengths, we will have a pre-eminent strategic position in the global marketplace for the benefit of our customers. We will be able to exploit new markets, and we will improve return and value for our shareholders. 1…

    • 10402 Words
    • 42 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    New Balance Case Study: Capabilities and Resources
    • 1374 Words
    • 6 Pages

    New Balance Case Study: Capabilities and Resources

    * Alliances with Porsche AG, Ford, and Gemini Racing Technologies – provide access to automotive technology…

    • 1374 Words
    • 6 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Ceo Position?
    • 651 Words
    • 3 Pages

    Ceo Position?

    Another recently formed Strategic Alliance is the between Lamborghini and Callaway. The reason for this alliance is the new concept car, the so called Sesto Elemento which is made of a new material named forged composite.…

    • 651 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Strategic Alliance
    • 1939 Words
    • 8 Pages

    Strategic Alliance

    In today’s ever changing environments strategic alliances have emerged as a driving force behind the success of many business ventures. Strategic alliances allow companies to expand their reach without having to maximise their risk or commit themselves beyond their core business. Throughout this paper I will be examining the driving forces behind strategic alliances looking predominately at the motivations behind the formation of a strategic alliance and the idea of a multi company alliance. Following this I will be analysing the key elements that make for a successful strategic alliance and how a successful alliances are measured. After which I will be establishing the risk that are pronounced when entering into such ventures, looking at past ventures and the issues that prevented them from becoming profitable.…

    • 1939 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Fiat Customer Experience in the United States
    • 1846 Words
    • 8 Pages

    Fiat Customer Experience in the United States

    Fiat is an Italian car company headquartered in Turin, Italy. The parent company, Fiat SpA, owns many reputable car brands in the world including Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep and Maserati (fiatspa.com). The company re-entered the US market in 2011 by purchasing a 20% stake in Chrysler. As of January, 2014, Fiat owns 100% of Chrysler (Sloan, 2014). It sells the Fiat 500 line in the US (fiatusa.com).…

    • 1846 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Tata and Fiat Jv
    • 1030 Words
    • 5 Pages

    Tata and Fiat Jv

    2. Given Fiat’s alliance experience with GM and other partners, do you think it will make a good partner for Tata? Why?…

    • 1030 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    2009 Chrysler-Fiat Strategic Alliance Case Study
    • 4066 Words
    • 13 Pages

    2009 Chrysler-Fiat Strategic Alliance Case Study

    A strategic alliance links two or more companies operations by combining manufacturing resources and knowledge. These tie-ups combine R&D, product development, distribution networks, and other areas in knowledge allocation. With that said, Chrysler was ordered by the U.S. government to form an alliance and file for Chapter 11 bankruptcy in-order to acquire government bailout. So, in early 2009, Fiat turned out to be the key contender for Chrysler and in April 2009, Chrysler and Fiat announced their strategic alliance and agreed on a new ownership structure. In May 2009, Chrysler filed for Chapter 11 bankruptcy in a New York court and started the process of a company-wide restructuring. Chrysler and Fiat, as well as the Obama Administration, announced that the Fiat Group, plans on providing technology-related expertise and assembly platforms to Chrysler. The focal aim of this alliance is to allow Chrysler to survive and develop small and fuel-efficient autos in North America. The initial formation of this alliance allocated Fiat with twenty percent ownership of Chrysler and could raise its stake to thirty-five percent. After 2013, if Fiat meets certain conditions such as, introducing fuel-efficient cars and manufacturing small auto engines in North America, their shares of Chrysler ownership may rise to fifty-one percent. Therefore, this strategic alliance will benefit both companies and allow Fiat entry to the United States.…

    • 4066 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Anatomy of a Failed Alliance—General Motors and Daewoo
    • 886 Words
    • 4 Pages

    Anatomy of a Failed Alliance—General Motors and Daewoo

    In June 1984, General Motors and the Daewoo Group of Korea signed an agreement that called for each to invest $100 million in a South Korean-based 50/50 joint venture, Daewoo Motor Company, that would manufacture a subcompact car, the Pontiac LeMans, based on GM's popular German-designed Opel-Kadett (Opel is a wholly owned German subsidiary of GM). Much of the day-to-day management of the alliance was to be placed in the hands of Daewoo executives, with managerial and technical advice being provided by a limited number of GM executives. At the time, many hailed the alliance as a smart move for both companies. GM doubted that a small car could be built profitably in the United States because of high labor costs, and it saw enormous advantages in this marriage of German technology and South Korean cheap labor. At the time, Roger Smith, GM's chairman, told Korean reporters that GM's North American operation would probably end up importing 80,000 to 1,00,000 cars a year from Daewoo Motors. As for the Daewoo Group, it was getting access to the superior engineering skills of GM and an entree into the world's largest car market—the United States.…

    • 886 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Auto investment
    • 521 Words
    • 3 Pages

    Auto investment

    Hence, the best automobile company to invest in the current economy would be Fiat in Italy. Fiat holds 71.1% market share in the Italian automobile industry (“Italy Passenger Car Sales By Brand”, 2013) and 63.7% in the exports (Passenger Car Exports By Brand, 2013). Also the most profitable sector of fiat’s sectors is the sale of diesel vehicles. It constitutes…

    • 521 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics