Alliances in the Automotive Industry

Chrysler-Fiat alliance has been particularly fruitful and this has likely come as a surprise to many, considering that in the international automotive environment both companies have lost significant ground at particular times in their history. Managers on both sides of the Atlantic seem to have a complex understanding of the attitudes required in order for the company to be successful and make use of these respective behaviors effectively. Chrysler in particular experienced a lot of progress as a consequence of its role in the alliance. This is likely due to the general public starting to perceive the company differently from how it was until recent years (Chrysler is no longer the typical American motor company that has trouble integrating in other markets).

Question 2

Fiat was typically seen as an auto company focused on producing small cars for the European market. As the company comes to put its logo on larger and more luxurious cars, the global market has started to express more interest in Fiat. Similarly, Chrysler was previously seen as a car maker concentrated on the American market -- not the typical car a non-American person would think about buying. Fiat also played an important role in helping Chrysler recover on the American market in addition to the rest of the world.

Question 3

Renault's acquisition of Nissan is relatively similar to the Fiat-Chrysler merger, considering that this collaboration also involves an European small car manufacturer working together with a renowned car manufacturer from a different continent. The main difference in this situation is Nissan's position in Europe in comparison to Chrysler's. Previous to being bought by Renault, Nissan experienced significant progress in Europe, with numerous Europeans expressing support with regard to the company. In contrast, Chrysler had a limited presence in Europe throughout the twentieth century, many Europeans likening it to a costly American car.

Question 4

Although many are likely to question the merger's success in the future, the reality is that two relatively problematic companies have come together with the purpose of strenghtening each-other. Fiat is currently seen as a car that is no longer the cheap product it was in the past. Similarly, Chrysler is gaining significant ground around the world as it starts to adopt more daring designs reminding people of its collaboration with an Italian auto manufacturer.

Question 5