The Chrysler-Fiat alliance and automotive market repositioning

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 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

The Chrysler-Fiat alliance has been particularly successful in spite of the fact that it did not seem that way in the beginning of the merger. Both companies have gotten actively involved in identifying each-other's weaknesses and using their strong points with the purpose to remove these respective problems. Cars such as the 2011 Lancia Thema make it possible for society to gain a more complex understanding of the way that the two companies have started to work together. The car is practically a redesigned Chrysler 300c made to fit European requirements and Lancia is probably one of the best options Fiat had when considering rebadging Chrysler products.

Bibliography:

Loska, T. "Strategic Alliances: The Renault & Nissan Alliance - Celebrating 10 Years of Synergies." (GRIN Verlag, 2013)