Case: Sergio Marchionne’s Challenge at Chrysler 1. Background Information Fiat CEO Sergio Marchionne took over Chrysler operations in June 2009. Former CEO Robert Nardelli used buyouts and layoffs to cut departments which halted the company to only make Jeep Grand Cherokees and Chrysler 300 Sedan’s. 1.1 People / Key Players Sergio Marchionne – CEO of Fiat Robert Nardelli – Former CEO of Chrysler Cerberus – Capital Management Firm 1.2 Chronology of Key Relevant Events Fiat CEO Sergio
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Università di Torino Facoltà di Economia Course of Business Combination Exercises November 2012 Exercise 1 Question and Assumptions • Please estimate the Enterprise Value (EV) of “Company Alpha” (total and per share) by applying the market comparables on page 3. • Main Financial Data of “Company Alpha” – EBITDA per Share 2013: €4.40 – EBITDA per Share 2014: €5.70 – Sales per Share 2013: €18.10 – Sales per Share 2014: €22.20 – Total Shares Outstanding: 8‚250‚000 2 Exercise
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Case Study: Fiat Auto and General Motors Alliance Case Study: Fiat Auto and General Motors Introduction The economic crisis and other factors‚ affect different companies in the global market and automotive industries are not exempted. In order to cope with economic problems within the industry‚ different companies try to find the most efficient ways to save the company and one of these is through the consideration of merging or going into alliance. In alliance‚ both companies
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’Management At Work’ case on pages 146-147 about the auto industry. Complete the Case Questions #1-3. Research Fiat and Chrysler on the Internet and write an update on current events in those companies. 1. According to a major economics consulting firm‚ Fiat’s “South American operations are the jewel in the Italian company’s global operations.”* Fiat has plants in Brazil and Argentina‚ and Brazil is its biggest market‚ well ahead of its home-country market. In 2011‚ with the Chrysler venture taking
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“Chrysler In Trouble” MGMT 479H Chrysler started as a merger of two men‚ one of whom was having declining sales after World War 1 in the 20’s which caused him to have high debts. Walter T. Chrysler joined Maxwell Motor Corporation to help bring the company back from the high debts. In 1924 the first Chrysler was launched in the automobile market. Over the years the company introduced many different models. They also developed by the end of the 1950’s the HEMI engine along with power
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CASE STUDY - “Daimler and Chrysler: lessons from a merger”. This case study is about the merger occurred in 1998 between two big companies in the auto industry: German company Daimler-Benz and American auto manufacturer Chrysler Group. At the end‚ this merger appeared to be a failure because of different types of problems. Chrysler benefited from Mercedes while benefits to Daimler were harder to find‚ so that Daimler decided to sell 80% of its stake in Chrysler for just 7.4 billion dollars.
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compensation policies‚ ownership structure‚ and the legal environment pose significant challenges to all mergers but especially international business combinations. On 6 May 1998 in London‚ Daimler-Benz of Germany signed a merger agreement with Chrysler Corporation of the United States. This chapter focuses on value creation and destruction‚ and the challenges of an international transaction. Given the favorable market response to the merger‚ we review the potential sources of value creation
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Thiago Antonio Beuron3 Abstract American company Chrysler Corporation due to differences in the organizational cultures involved or due to a so-called ‘clash of culture’. What happens when two successful car producers with different know-how and a different knowledge background‚ different work processes‚ different product portfolios and last but not least‚ completely different corporate cultures decide to merge? Daimler-Benz and Chrysler wanted to strengthen their position during economically
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GAAP / IFRS Fiat Group’s first-time adoption of IFRS Differences Between Key Accounting Methods Under Italian GAAP And IFRS What characterizes the differences between the two sets of methods? - Substance over form Example: Recognition of revenue - Less flexibility Example: Recognition of R&D cost - More transparent Main factors that affect management’s reporting incentives and strategy in fiscal year 2005 - Research & Development: Because Fiat main operations are based on the manufacturing
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economically conscious vehicles. Fiat has been manufacturing smaller for years‚ overseas in Europe‚ Brazil and even China. With the acquisition of the American made Automotive company Chrysler in 2009‚ Fiat has launch a marketing campaign to finally gain a hold in the American market. Is America ready for “Every Once in a while‚ something comes along so powerful in concept‚ so revolutionary in design‚ it redefines a generation – America‚ get ready for the one and only FIAT 500. Despite the American
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