Chrysler-Fiat Strategic Alliance
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Chrysler Fiat Strategic Alliance
The Chrysler Company was founded by Walter Chrysler on June 6, 1925, when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation. Later Fiat S.P.A was merged into the company following a board approval and become Fiat Chrysler Automobiles NV (FCA). FCA became the owner of the Fiat Group, the holding company that consists most of the company's brands, like Ferrari, Maserati, Fiat Group Automobiles, and Chrysler Group Automobiles. Fiat rose the most in almost five years in Milan trading after Sergio Marchionne, chief executive officer of Chrysler and its Italian parent, struck an accord to buy a 41.5 percent stake from a United Auto Workers retiree health-care trust. The No. 3 U.S. carmaker will put up most of the funding for the transaction, underscoring the CEO’s reputation as a dealmaker. The agreement limits the amount of money that Turin-based Fiat must spend to take over and merge with Chrysler, which it helped rescue from bankruptcy almost five years ago. That puts the Italian company in a position to gain financial resources from the U.S. unit to help turn around unprofitable European operations. Marchionne has sought since taking the helm at Fiat in 2004 to combine the company with another carmaker to challenge Toyota Motor Corp., GM and Volkswagen AG (VOW) in sales.
This was vital since Chrysler has a tremendous loss in 2008 and had to lay off many of their workers where strategic alliance was defiantly needed .They were also going bankrupt, so this was the best option to keep them afloat. They could not update themselves with the current economy and required to get assistance elsewhere. This deal was sensual for Fiat, since they could get the firm at a low price and re-venture North America. They also have a good thing going in that fact that they own 21 percent since 2009, then can get it increased to 35 percent this year
Course Name:
Course Instructor:
Date of Submission:
Chrysler Fiat Strategic Alliance
The Chrysler Company was founded by Walter Chrysler on June 6, 1925, when the Maxwell Motor Company (est. 1904) was re-organized into the Chrysler Corporation. Later Fiat S.P.A was merged into the company following a board approval and become Fiat Chrysler Automobiles NV (FCA). FCA became the owner of the Fiat Group, the holding company that consists most of the company's brands, like Ferrari, Maserati, Fiat Group Automobiles, and Chrysler Group Automobiles. Fiat rose the most in almost five years in Milan trading after Sergio Marchionne, chief executive officer of Chrysler and its Italian parent, struck an accord to buy a 41.5 percent stake from a United Auto Workers retiree health-care trust. The No. 3 U.S. carmaker will put up most of the funding for the transaction, underscoring the CEO’s reputation as a dealmaker. The agreement limits the amount of money that Turin-based Fiat must spend to take over and merge with Chrysler, which it helped rescue from bankruptcy almost five years ago. That puts the Italian company in a position to gain financial resources from the U.S. unit to help turn around unprofitable European operations. Marchionne has sought since taking the helm at Fiat in 2004 to combine the company with another carmaker to challenge Toyota Motor Corp., GM and Volkswagen AG (VOW) in sales.
This was vital since Chrysler has a tremendous loss in 2008 and had to lay off many of their workers where strategic alliance was defiantly needed .They were also going bankrupt, so this was the best option to keep them afloat. They could not update themselves with the current economy and required to get assistance elsewhere. This deal was sensual for Fiat, since they could get the firm at a low price and re-venture North America. They also have a good thing going in that fact that they own 21 percent since 2009, then can get it increased to 35 percent this year