Fiat saves Chrysler with a strategic partnership

Fiat saves Chrysler with a strategic partnership

Chrysler announced yesterday that the troubled automaker has entered into a global strategic alliance with Fiat SpA, giving both companies access to each others’ products and markets. Fiat will also lend a hand in developing a business plan to present to the US Treasury; bringing with it experience gained through the Italian auto giant’s own restructuring. Chrysler now gets access to a range of small, fuel-efficient cars that are nothing like what is currently offered in American showrooms. Fiat’s engineering will be shifted over to some Chrysler manufacturing sites, keeping the plants busy and offering both brands ample capacity for the parts they will need to build cars.

in return for coming to the rescue Fiat will get a 35 percent equity interest in Chrysler and a way for the Italian automaker to re-enter the American market by suppling Chrysler the small cars it’s badly lacking. The partnership will go the other way, as well, with Chrysler vehicles gaining access to other markets through Fiat’s distribution avenues. With this new alliance Chrysler has dramatically increased its chances of not just survival but also possible future prosperity.

Chrysler announced yesterday that the troubled automaker has entered into a global strategic alliance with Fiat SpA, giving both companies access to each others’ products and markets. Fiat will also lend a hand in developing a business plan to present to the US Treasury; bringing with it experience gained through the Italian auto giant’s own restructuring. Chrysler now gets access to a range of small, fuel-efficient cars that are nothing like what is currently offered in American showrooms. Fiat’s engineering will be shifted over to some Chrysler manufacturing sites, keeping the plants busy and offering both brands ample capacity for the parts they will need to build cars.

in return for coming to the rescue Fiat will get a 35 percent equity interest in Chrysler and a way for the Italian automaker to re-enter the American market by suppling Chrysler the small cars it’s badly lacking. The partnership will go the other way, as well, with Chrysler vehicles gaining access to other markets through Fiat’s distribution avenues. With this new alliance Chrysler has dramatically increased its chances of not just survival but also possible future prosperity.

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