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
Excerpts
Fiat and Chrysler Joining Forces
On January 20, 2009, as part of its bankruptcy filing, Chrysler announced its plans to establish a global strategic alliance with Fiat. Under the agreement, Fiat would receive a 20% equity stake of Chrysler which could grow to a 35% stake if certain financial and manufacturing goals were met...
Benefits of the Alliance
According to experts, the Fiat/Chrysler alliance would allow the two automakers to share vehicle platforms, distribution channels, and technology and take advantage of each other's distribution networks and global supplier base, thereby saving costs in large volumes...
Drawbacks
Some analysts were of the view that the Italian-American merger had little potential to succeed due to the drop in auto sales in the global car market (Refer to Exhibit II for a brief note on the global auto industry)...
The Road Ahead
In the first quarter ended March 31, 2010, Chrysler's net loss declined considerably to US$197 million due to improved operating performance. The company's net revenues increased by 3% to US$ 9,687 million compared to US$ 9,434 million in the fourth quarter of 2009...
Exhibits
Exhibit I: Worldwide Vehicle Sales of Fiat and Chrysler (2003-2008)
Exhibit II: A Brief Note on Global Auto Industry
Exhibit III: Chrysler's Consolidated Statement of Operations
Exhibit IV: Chrysler's Consolidated Statement of Cash Flows
Exhibit V: Fiat's Income Statement
Buy this case study (Please select any one of the payment options)
| Price: Rs.600 |
Price: Rs.600 | PayPal (13 USD) |
