Evaluating the Chrysler Fiat Alliance

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EVALUATING THE CHRYSLER-­FIAT AUTO ALLIANCE IN 2012 International Management June-­29-­2014 Executive Summary In this paper, our team will discuss the problems, solutions and the results from the strategic alliance between Chrysler LLC (NASDAQ: Private) and FIAT S.p.A. (BIT: F) will bring for the future of both automakers. Using the resource base view, we are able to limit our analysis to identifying problems that lacking proper international management practices, solutions for such identified problems and a general overview of both companies. Chrysler has seen better numbers since applying Fiat’s strategic international management knowledge. The research method applied are based on solid evidence from a great number of sources such as company records, published articles, and some Internet sources when the former two where not enough. Introduction Fabbrica Italiana Automobil Torino (Fiat S.p.A) (BIT: F) is an Italian carmaker based in Turin founded in 1899 by a group of investors lead by Giovanni Agnelli. Throughout the years, Fiat has acquired multiple other companies such as Lancia in 1968, 50 percent Ferrari, currently owning 85 percent, taking over control from the Italian government of Alfa Romeo in 1986, purchased Maserati in 1993 and of 2012 purchased the majority of Chrysler LLC shares, 61.8 percent. Fiat also produces agricultural and commercial equipment led by CNH Global, and commercial vehicles led by the IVECO brand. We will focus on the car production Chrysler – Fiat for this report. Fiat was a troubled company with a steady loss in sales for a great period of time, problems with the union workers, oil crisis, bad reliability, a bailout and a bad acquisition from GM left the company in a bad shape. On June 2004 Sergio Marchionne was hired to become the CEO of Fiat. Sergio Marchionne is a well-known turnaround executive, and

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