Akvizícia Fiat-Chrysler (Slovak)

In: Business and Management

Submitted By jakub
Words 2759
Pages 12
EKONOMICKÁ UNIVERZITA V BRATISLAVE
FAKULTA PODNIKOVÉHO MANAŽMENTU

FIAT - CHRYSLER

Vypracovanie zadania na predmet Medzinárodný manažment a medzinárodné podnikanie

Bratislava Jakub Karľa akademický rok 2011/2012

1. Stručná charakteristika spoločnosti Fiat – Chrysler

Fúzia spoločností Fiat S.p.A. a Chrysler Group LLC sa oficiálne udiala v roku 2009. Prvé správy o tejto fúzii sa objavili 20. Januára 2009, kedy spoločnosť Fiat súhlasila s odkúpením 20% podielu vo firme Chrysler, ktorý bol v tom období v ohrození bankrotu. Obe spoločnosti sa zaviazali, že si budú navzájom poskytovať technológie, ktoré im pomôžu v boji s konkurenciou, hlavne s firmami Toyota, Volkswagen a alianciou Renault S.A. a Nissanu.

Firma Fiat S.p.A. je talianska automobilová spoločnosť, ktorá bola založená v roku 1899. Zakladateľ spoločnosti bol Giovanni Agnelli. Sídlo spoločnosti je v Turíne, z čoho vychádza aj plný názov spoločnosti Fabbrica Italiana Automobili Torino plus skratka S.p.A., čo znamená Sozietà per Azioni, čo je v preklade akciová spoločnosť. Firma sa zaoberá výrobou automobilov, je to jedenásta najväčšia automobilka na svete a najväčšia automobilka Talianska. V roku 2010 predala spolu 2 410 021 automobilov. Do spoločnosti Fiat S.p.A. spolu patrí 7 automobiliek: Abarth, Alfa Romeo, Ferrari, Fiat, Fiat Proffesional, Lancia a Maserati.

Fiat vyrába svoje automobily po celom svete. Mimo Talianska má najväčšiu výrobňu v Brazílii, kde je tiež Fiat trhovým lídrom. Fiat má tiež továrne v Argentíne a v Poľsku, má tiež dlhú históriu poskytovania licencií na svoje produkty v mnohých ďalších krajinách.

Firma Chrysler Group LLC je americký výrobca automobilov. Spoločnosť bola založená v roku 1925 v Detroite. Firma má názov po zakladateľovi Walterovi Chryslerovi. Chrysler je…...

Similar Documents

The 2009 Chrysler-Fiat Strategic Alliance

...Case Study 3 The 2009 Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? When it comes to dealing with worldwide economic recession, grave steps have to be taken in order to ensure the survival of businesses, as too many livelihoods depend on it. Also, due to the investments that shareholders make, and the wide array of other businesses that the company would affect, it puts a lot of pressure on the board or the people running the company to make sure that they survive the bad times and emerge victorious. For Chrysler, it was a major setback when Daimler decided to withdraw its partnership and give its 80 per cent stake to Cerberus for less than 1/4th of the price they bought it for. Chrysler was doing badly, and although known as the “Number Three” car in North America, it was not able to keep up and had to declare bankruptcy and was told to form a strategic alliance with a company as a part of the Obama Administration rescue plan. Fiat has had its own share of ups and downs, but in the European market it has proven to be successful. It withdrew itself from the North American market in the nineteen eighties as it could not keep up there. But now, with its strategic alliance with Chrysler, it can benefit by entering into the North American market without having to push too much as Chrysler is already a well-known brand there. The Strategic Alliance was definitely......

Words: 2916 - Pages: 12

Akvizícia Fiat-Chrysler (Slovak)

...MANAŽMENTU FIAT - CHRYSLER Vypracovanie zadania na predmet Medzinárodný manažment a medzinárodné podnikanie Bratislava Jakub Karľa akademický rok 2011/2012 1. Stručná charakteristika spoločnosti Fiat – Chrysler Fúzia spoločností Fiat S.p.A. a Chrysler Group LLC sa oficiálne udiala v roku 2009. Prvé správy o tejto fúzii sa objavili 20. Januára 2009, kedy spoločnosť Fiat súhlasila s odkúpením 20% podielu vo firme Chrysler, ktorý bol v tom období v ohrození bankrotu. Obe spoločnosti sa zaviazali, že si budú navzájom poskytovať technológie, ktoré im pomôžu v boji s konkurenciou, hlavne s firmami Toyota, Volkswagen a alianciou Renault S.A. a Nissanu. Firma Fiat S.p.A. je talianska automobilová spoločnosť, ktorá bola založená v roku 1899. Zakladateľ spoločnosti bol Giovanni Agnelli. Sídlo spoločnosti je v Turíne, z čoho vychádza aj plný názov spoločnosti Fabbrica Italiana Automobili Torino plus skratka S.p.A., čo znamená Sozietà per Azioni, čo je v preklade akciová spoločnosť. Firma sa zaoberá výrobou automobilov, je to jedenásta najväčšia automobilka na svete a najväčšia automobilka Talianska. V roku 2010 predala spolu 2 410 021 automobilov. Do spoločnosti Fiat S.p.A. spolu patrí 7 automobiliek: Abarth, Alfa Romeo, Ferrari, Fiat, Fiat Proffesional, Lancia a Maserati. Fiat vyrába svoje automobily po celom svete. Mimo Talianska má najväčšiu výrobňu v Brazílii, kde je......

Words: 2759 - Pages: 12

Case Study – Chrysler-Fiat Strategic Alliance

...Case Study – Chrysler-Fiat Strategic Alliance 1. What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? * According to me, the alliance is good both for Chrysler and fiat. Fiat can take care of the technology of Chrysler. It can have fiats well-developed distribution network in European market. Fiat will have the advantage of North American market. Combined production capacity will bring profits. * They also have problems in many aspects. Different corporate culture Mismatch of brands Regulatory issues 2. Analyze and evaluate Chrysler and Fiat’s strengths and weaknesses before and after their 2009 strategic alliance (see Table II and III). Fiat | Strengths | Weakness | Before Alliance | * Fiat acquires Lancia and 50% of Italian icon Ferrari. * Fiat became the largest automaker in Europe by acquiring Alfa Romeo from the Italian government. * Fiat hires Sergio Marchionne to become its CEO * Fiat was the largest automaker in Europe. | * Fiat had labor strikes and assembly line problems. * Took off jobs of many employees. | AfterAlliance | * Fiat have the advantage of getting new technology * Large distribution network in Europe and North America. | * Labor union problems * Ownership problems | Chrysler | Strengths | Weakness | Before Alliance | * Chrysler had a market share of 12.5% in U.S in 2008. * The company was a big player in North America in mini...

Words: 492 - Pages: 2

Chrysler

...“Chrysler in Trouble” Synopsis: In 2008, the United States economy experienced some major down turn. Banks ceased lending, there were problems in the real estate markets, there was a rise in unemployment, and there was a decrease in personal spending among consumers. The United States car industry was affected tremendously. Consumers found it difficult to get an auto loan and that the actual financing was too expensive. The auto industry had its worse year since 1992 in 2008. There was an 18% decrease since 2007. Chrysler’s market was restricted to the United States and since the crisis started there, Chrysler’s sales were affected greatly. Chrysler found it hard to carry its own business. Chrysler Motors, LLC was the third largest automobile manufacturer in the United States who filed for bankruptcy protection on April 30, 2009, under section 363 of chapter 11 of the bankruptcy code. The company included its 24 subsidiaries in the filing. In order to remain viable and as a condition of the bankruptcy filing, Chrysler announced that it would form an alliance with Fiat SpA. Fiat was scheduled to receive a 20% stake in the company and it would increase to 35% over time. The Voluntary Employees Benefit Association would secure a 55% stake in the company once it emerged from bankruptcy. The United States Treasury would also participate in the restructuring of the company since they considered Chrysler an integral part of the United States economy and for their...

Words: 1722 - Pages: 7

The 2009 Chrysler-Fiat Strategic Alliance

...2013 Case 7 The 2009 Chrysler-Fiat Strategic Alliance 1. The strategic alliance was defiantly needed. This was important since Chrysler has a tremendous loss in 2008 and had to lay off many of their workers. They were also going bankrupt, so this was the best option to keep them afloat. They could not keep up with the economy and needed to get help from someone. This deal made sense for Fiat, since they could get the company at a low price and re-enter into North America. They also have a good thing going in that fact that they own 21 percent since 2009, then can get it increased to 35 percent this year and eventually might have 51 percent of the company. This was not the most ideal thing for Chrysler, but it was necessary. 2. Chrysler has a brand name in North America, where Fiat lacks the visibility. Fiat has been very successful in Europe, where Chrysler does not have a strong dealer network there. Chrysler finds new markers by developing new range of vehicles. After the merger, Chrysler emerges from the bankruptcy and starts to restructure and Fiat gains a brand in North America and technology from here. 3. Chrysler had always been behind Ford and GM and was known as the “number three.” Since the merger, they were able to gain more in Europe and new technology. As they are still not the number one company they have bettered themselves and are on the rise. The other five companies are still on the rise as well, so Chrysler-Fiat will have to work......

Words: 550 - Pages: 3

Chrysler

...Chrysler The company I selected to research is Chrysler. My husband drives a Dodge Ram and I drive a Dodge Journey, so I was intrigued to write about a company that my husband and I support. In the following business brief, I will inform you of Chrysler’s history, the industry, and the organizational structure. History Chrysler was founded in 1925. The company was founded by Walter P. Chrysler in Detroit. In 1928, Chrysler bought Dodge Brothers and also Plymouth and DeSoto Lines. The same year, Walter P. Chrysler was named Man of the Year (Wilson, 2011). In 1934, Chrysler introduced the first aerodynamically designed vehicle. They were praised for the forward design, but the commercial was a failure. In 1940, Walter P. Chrysler died. From 1942 to 1945 the Chrysler plant was shut down due to World War II, so the plant made Sherman tanks and other military vehicles (Wilson, 2011). In 1973 the first OPEC oil embargo drives up gas prices, which devastated full-size car sales (Wilson, 2011). In 1979, Chrysler was saved by Congress and President Carter from bankruptcy, and the following year the President signed the Chrysler Loan Guarantee Act, providing $1.5 billion in loan guarantees. In 1983, sales soar as Chrysler introduced the first minivan and fuel efficient cars they called K-cars. This enabled Chrysler to pay off their government loan seven years early. In 1987, Chrysler bought American Motors Corp, which gave them possession of the Jeep brand. In 1998...

Words: 590 - Pages: 3

Chrysler and Fiat

...Fiat and Chrysler Merger: An Analysis of the alliance of Fiat and Chrysler Taneka Littlejohn Sonya Merrill August 29, 2011 1 Table of Contents Project Outline I. Executive Summary II. Introduction III. Company Profile and Environment (Context) IV. Strategic Issues and Reverence V. Stakeholder Impact VI. Conclusions and Recommendations VII. Bibliography 3-4 5-6 7 8-9 10-12 12-13 13-14 15 2 Project Outline I. Discuss history of Chrysler Group A. Discuss Chrysler’s start within the automotive industry B. Discuss some of the automobiles that Chrysler makes C. Discuss Chrysler’s position within the automotive market II. Discuss history of Fiat SPA A. Discuss Fiat’s start within the automotive industry B. Discuss some of the automobiles that Fiat makes C. Discuss Fiat’s position within the automotive industry III. Discuss how both automobile firms have had past reputations in America. A. Discuss when Fiat first came to the United States B. Discuss why Fiat suddenly left the United States C. Discuss Chrysler impact within the American market and how America’s past look on their automobiles shaped its future. IV. Discuss some of the competitors of Chrysler and Fiat A. Discuss how competition affected both firms B. Discuss how Chrysler and Fiat at one point were competition for one another V. Cultural Context A. Culture aspects of the Chrysler- Fiat alliance B. Discuss how society and positioning have affected both automobile firms C. Discuss some recent news about......

Words: 3643 - Pages: 15

Fiat Chrysler Merger

...piac még inkább megköveteli őket. A Fiat és a Chrysler 2009-ban kezdődő együttműködése kiváló példa egy jól működő kooperációra. Nem véletlen az évszám, a válsággal kezdődően, a Chryslernek hihetetlen nagy veszteségei voltak, csakúgy, mint a szintén amerikai vetélytársainak, a Fordnak és a GM-nek. A csődeljárás alatt lévő Chryslernek szüksége volt újabb modellekre és fejlesztésekre, ami persze lehetetlennek bizonyult akkori helyzetében, hiszen sem idő sem pénz nem állt rendelkezésükre. Ekkor jelentették be a Fiat Group és a Chrysler között létrejövő együttműködést, amely biztosította a Chlysler számára az összes műszaki fejlesztést az Olasz cégtől. Robert Nardelli az amerikai cég akkori CEO-ja egy körlevélben úgy fogalmazott, hogy legalább 5000 munkahelyet mentett meg, 10 milliárdnyi fejlesztést és 5 év fejlesztési időt spórolt a szerződés a Chryslernek. Pontosan a Fiat fejlesztéseire volt szüksége a Chryslernek a válság idején, hiszen ő tudott olyan kis- és közepes kategóriás alacsony fogyasztású modellekkel és újításokkal szolgálni, ami abban az időben értékesebb volt, mint az amerikai cég hatalmas benzinzabáló típusai, így nem csupán kilábaltak a válságból, de néhány évre a kritikus mélyponttól már újra hatalmas profitjuk van. Természetesen a Fiat szempontjából legalább ugyanennyire hasznos volt az együttműködés, nem csupán azért mert a Chrysler 35%-os tulajdonosa lett, hanem azért is mert termékeit újra értékesíteni kezdte a Chrysler eladási hálózatán keresztül ......

Words: 1452 - Pages: 6

Case 7 : 2009 Chrysler-Fiat

...1. While this was not the most ideal situation for Chrysler, I think the alliance with Fiat was a necessity. Chrysler had a tremendous loss in profits, had to lay off many workers, and was going to have to file for bankruptcy. This was a great option to help them stay afloat and get help from an outside source. Obviously for Fiat this was a good move. They did take a risk since Chrysler was going into bankruptcy, but they were able to acquire it for a reasonable price and also help themselves to re-enter into North America with a company that already had a solid market share. Fiat most recently purchased the 41% of Chrysler they did not own. The company is definitely on the upswing and will be able to better compete with GM and Ford. 2. Before 2009 strategic alliance: Chrysler – Strengths of Chrysler were they have a strong brand name and recognition within North America. In addition, their Jeep and minivan lines are very popular. They were one of the top three recognized auto brands in North America. Weaknesses were there was no presence in overseas in Europe, they were going into bankruptcy, and their de-merger with DaimlerChrysler hurt them financially. They also remained behind the other manufactures for quality and satisfaction with consumers and had little or no sub-compact cars. Fiat – Strengths of Fiat were they had reinvented themselves overseas in the European markets and are one of the most visible brands of small brand cars in Europe and quality is......

Words: 838 - Pages: 4

Case Study: the 2009 Chrysler-Fiat Strategic Alliance

...views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? The alignment between Fiat and Chrysler does not exactly save Chrysler. It gives Fiat an entry into the U.S. In short, Fiat is to get 35% of Chrysler, will not pay any cash for the stake, and it will give Chrysler access to its technology. Fiat had publicly said it wanted a production base in North America for its Alfa Romeo brand--and presumably the Fiat brand, too. Through its35% interest that it is getting in Chrysler, it would presumably have access to a U.S. plant to build its cars. The case is intended to have students look at the 2009 Chrysler-Fiat strategic alliance, its current issues, and future viability in the global auto industry. The new landscape of the American auto industry and the role of Fiat is analyzed in the cross-border tie-up. After de-merging with Daimler in 2007, Chrysler did not do well because of the 2008-2009 global financial crises and its bankruptcy filing. Chrysler’s other problems included its financial constraints and heightened competition in North America. The company had no choice but to look for a partner. During this process, Chrysler explored the possibility of a tie-up with GM, Ford, Volkswagen, Tata Motors, Nissan and Fiat. Eventually Chrysler decided on creating a strategic alliance where Fiat agreed on taking a 20 percent stake in Chrysler. In the next five years, the tie-up may increase Fiat’s ownership of Chrysler to 35 percent.......

Words: 1088 - Pages: 5

Fiat-Chrysler

...Alleanza Fiat – Chrysler La crisi economica in atto porterà a una forte concentrazione nel mercato dell’auto, tanto che fra i costruttori di massa potrebbero anche sopravviverne solo sei. Sergio Marchionne L’alleanza tra i due colossi automobilistici Fiat e Chrysler è nata proprio in un momento particolare, caratterizzato da una forte crisi finanziaria. Gli shocks subiti dall’economia reale, la perdita del potere d’acquisto, la sovrapproduzione di beni, il calo dei consumi e le aspettative negative, per citare solo alcuni degli effetti negativi della recente crisi, hanno sconquassato l’economia mondiale, andando a colpire anche il settore automobilistico e portandolo quasi a un “collasso totale”. Il crollo delle vendite delle automobili non ha riguardato solamente il mercato europeo o statunitense, ma ha causato anche un rallentamento di mercati trainanti come l’India e la Cina. Produzione mondiale di automobili (variazioni percentuali) PAESE Germania Francia Spagna Gran Bretagna Italia West Europe East Europe North America South America Asia Total 2008 5532 2300 2025 1447 700 13185 4796 12593 3560 22849 57518 2007 5709 2551 2309 1535 911 14346 4493 15021 3210 22583 60420 Var. % -3 -10 -12 -6 -23 -8 -7 -16 +6,8 +1 -5 Fonte: OICA – Organizzazione Internazionale dei Costruttori di Automobili (2007-2008) La crisi ha colpito anche i titoli azionari dei principali produttori automobilistici; General Motors e Ford hanno fatto registrare pessimi risultati a......

Words: 5265 - Pages: 22

Fiat

...case studies relating to the negotiation between Fiat and Chrysler to establish a strategic alliance in the automobile sector, the article would like to investigate how the entry of interested third parties can influence the dynamics of a negotiation process. In particular, this work shows how this input has allowed the management of a critical deadlock. The adopted analytical approach has been drawn from the deliberations of James K. Sebenius (1983, 1992). 167 The Special Issue on Contemporary Research in Arts and Social Science © Centre for Promoting Ideas, USA In terms of theory and practice, the observations made from the analysis may be a convenient starting point for developing models of the government‟s dynamics of negotiations, focused on a strategic management of the parties and their interests. The work is developed with an initial critical review of the literature, aimed at deepening awareness about the research question. The research methodology adopted and the analysis of the case study will follow. The work is concluded with a discussion on the evidence provided from the analysis, with an underlying reflection on the most important implications for future research efforts. 2. The Fiat-Chrysler Negotiation The international strategy of Fiat has been characteristic of the Italian-based company since the early years of the twentieth century. Since 1908, when Giovanni Agnelli decided to open the U.S. market, Fiat has been facing the strategies of......

Words: 1633 - Pages: 7

The 2009 Chrysler-Fiat Strategic Alliance

...The 2009 Chrysler-Fiat Strategic Alliance Part-I What are your views of the 2009 Chrysler-Fiat strategic alliance and its future prospects in the auto industry? The strategic alliance between Chrysler and Fiat was a beneficial step for both the companies. Chrysler was facing problem of financial crisis of 2008-2009 and was not able to perform after de- merging with Daimler in the year 2007. In North-America Chrysler was facing challenges of its bankruptcy filing and global financial crisis, because of which the demand of its car decreased in the domestic market. In order to recover from this loss, Chrysler had no other option but to find a partner with whom it could serve the foreign market. Chrysler surveyed the possibilities of various big automakers like Nissan, TATA Motors, Ford, Volkswagen, GM and Fiat. Finally they decided to create a strategic alliance with Fiat. In this alliance Fiat agreed for 20% of Chrysler stake and increased to 35% within five years. With this Alliance, Fiat got the opportunity to enter the US Market and instead of paying for the 35% of Chrysler stake, they provided Chrysler access to their technology in automobiles. (Calabrese, 2012) Fiat announced publicly their intention to open a production center in North America for manufacturing of Alfa Romeo and Fiat brands. By doing so they gained 35% stake in Chrysler and gained access to the Chrysler production center in America. Similarly, Chrysler also benefitted by......

Words: 728 - Pages: 3

Evaluating the Chrysler-Fiat Auto Alliance in 2012

...1. What are your views of the Chrysler-Fiat auto alliance and its status in 2012? Despite some drawbacks, the alliance has worked well, and has been beneficial for Chrysler and Fiat. The growth and survival of both companies had faced problems in the areas of technology and quality standards. Chrysler needed the alliance for survival due to its bankruptcy position and conditions of bailout. It also needed a partner to bring innovation, increased R&D opportunities, low cost technology and access to European markets. Fiat wanted to reenter the North American market and needed access and distribution through an established manufacturer that knew the market, and had the technology available; which would be possible through a strategic alliance with Chrysler. There were concerns that all synergies would not be successful due to cultural differences and integration issues; however, the opportunities that existed to reduce costs, expand into new markets, and provide low priced fuel -efficient automobiles outweighed those concerns. As of 2012, Chrysler and Fiat seemed to be in a good position regarding capitalizing on the alliance. It has brought major savings in the areas of joint product development, supplier networks, and dealer networks. Both Chrysler and Fiat have raised their quality ratings and established dealer networks in the U.S. and Europe. The alliance sold 4.2 million vehicles worldwide in 2011 and planned to sell six million automobiles worldwide by 2014. ...

Words: 1181 - Pages: 5

Fiat

...about how Fiat, such many other factories, is struggling in Europe’s actual crisis and how the crumbling European economy is affecting companies. Fiat is one of the companies that has been affected, and now has to make changes into how they are working to allow themselves to survive in this economy. That goes from moving their plants into other countries that have cheaper labor, or re-engineering their plants to minimize the steps in manufacturing a car. We see in this article that some plants are manufacturing almost the same number of cars with almost a fourth of the labor. Some changes have to be made, and CEO is using scare tactics towards unions to get more out the employees, or they would have to close the plant. A lot of people are insecure and unsure about their future, because Fiat is not very open in sharing the information on the future of the company. 2- Many concepts are being introduced in this article that I have learned in the first few chapters of the textbook. Te ones I was able to get are: - Outsourcing: Fiat is opening plants in different countries that are more efficient and where labor is less costing and cheaper, giving them opportunities to price differently or make more profit and have less cost - Productivity: fiat is reengineering plants so that they can minimize the number of steps a person needs to produce a car. - Joint venture: that is when fiat bought Chrysler and used the advanced technology that fiat has and that allowed Chrysler that......

Words: 297 - Pages: 2