Chrysler and Fiat Alliance

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Fiat was not only a survival matter for Chrysler but also became a part of taking care of the company’s sake bankruptcy. Fiat will share its technology with Chrysler to build small cars , and will let Chrysler to gain a new distribution network in the European markets. In other hand, some weaknesses will knock the strategic alliance with the two companies, technology sharing and mismatch of brand portfolios. This is a major problem and can cause issues related to the goals of both companies. Knowledge sharing in R&D, control, regulatory and antitrust issues distribution and ownership problems will be major weaknesses. Furthermore, because of global competition and expensive labor contracts will lose the company competitive advantage. But, Fiat assembled quality vehicles and carried a good learning curve in R&D, manufacturing, dealer networks. Moreover this strategic alliance is a major saving act in the area of joint product development A main reason is behind all this auto manufacturing implementation in the U.S, is the U.S government 2009 auto bailout. The Obama administration illustrated the bailout plans for the auto manufacturing field, this plan was closely specific to help Chrysler and GM from falling in Bankruptcy, because Chrysler and GM are considerate a national image of the U.S culture. A bankruptcy file must be implemented and a long-term partnership must be held with an auto manufacturer, Fiat was the best candidate for this strategic alliance. The first integrated plan of Fiat is to supply two types of small engines to Chrysler. Chrysler helped Fiat to re-enter the North American market to sell it cars and be a strong competitor with the lead of Sergio Marchionne. New opportunities are available today for the due to the globalization, new models and new technology, Chrysler and Fiat have a good opportunity to target small car hybrid segments, a new potential to reach middle classes in North America, Europe and emerging markets. High gasoline...
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