Fiat and Chrysler Strategic Alliance: Can a European and an American Automaker Dance Together?
|
Case Code: BSTR381 Case Length: 23 Pages Period: 2009-2010 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.600 Organization: Fiat S.p.A., Chrysler LLC Industry: Automotive Countries: Global Themes: Strategic Alliance, International Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
"This initiative represents a key milestone in the rapidly-changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process."
- Sergio Marchionne, CEO of Fiat Group, in 2009.
"This is a strategic alliance. It certainly doesn't hurt and it might help, but it does seem like a Band-Aid when there's a large wound"
- Tim Ghriskey, chief investment officer at Solaris Asset Management LLC., in 2009.
"It's one thing to have a partner. It's a second thing to have a partner who speaks a different language. And it's a third thing to have a partner who speaks a different language and is an ocean away from you"
- Gerald C. Meyers, former chairman and CEO of American Motors Corp., in 2009.
A Transcontinental Alliance
On April 30, 2009, Italian carmaker Fiat S.p.A. (Fiat) and US auto giant Chrysler LLC (Chrysler) signed a non-binding term agreement to establish a global strategic alliance. Under the terms of the agreement, Fiat would first hold a 20% stake in Chrysler which could increase to 35% if certain targets mandated by the deal were fulfilled. Fiat, which did not provide any cash for the alliance, would offer its fuel-efficient engines and small vehicle technologies to Chrysler in exchange for the latter's distribution network in the US. Commenting on the alliance, CEO of Fiat and Chrysler, Sergio Marchionne (Marchionne), said, "This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole.
Bringing together Fiat's world-class technology, platforms, and power-trains for small and medium sized cars, and its extensive distribution network in Latin America and Europe with Chrysler's rich heritage, strong North American presence, and talented and dedicated workforce will create a powerful new automotive company, while helping preserve jobs and a manufacturing industry that is critically important to the U.S. and Canadian economies."...
Buy this case study (Please select any one of the payment options)
| Price: Rs.600 |
Price: Rs.600 | PayPal (13 USD) |
