...1. What are your 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...
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...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 very...
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...STRATEGIC MARKETING The wish for Alfa Romeo to come back to the US Market Plan: 1) Introduction 2) The Us Market a. Pestel Analysis b. Main actors in the Market c. Porter Analysis d. State and trends e. Key factors to success 3) Strategies and recommendations a. The situation of Alfa Romeo b. A challenger position c. The threats and opportunities d. Marketing Mix (4P) 4) Conclusion 1) Introduction: Alfa Romeo is an Italian carmaker born in 1910, in Milano. Since 1986, the brand is a part of the Italian Automotive group Fiat. The Fiat Group owns the brands Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Ferrari, Iveco, Jeep, Lancia and Maserati. The CEO of Fiat is Sergio Marchionne and Harald Wester is the CEO of Alfa Romeo. Alfa Romeo left the Us Market in 1995, because its situation was dire, after a gold period in the middle of the sixties. Since 1995, Alfa Romeo officially sold only two models in the USA, representing 125 units. Fiat Group aims to develop its position on the world market, in September 2010, Fiat was the ninth automotive group in the world, with a production of 2.46 millions of vehicles. To develop itself on an international way, the group is counting on the US market and had implemented many strategies to increase its market shares. The main one was to progressively acquire the Chrysler...
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...CASO FIAT Durante toda la década de los 90 la compañía ha sufrido una pérdida de cuota de mercado, pasando de un 7% a un 3,5%, debido a que una competencia en precios bajos suponía una mala percepción de la marca por parte de los consumidores españoles. El producir coches pequeños y frágiles, una imagen genérica plasmada en su gama de productos. Coches de escaso diseño y calidad, que convenía por su precio. Fiat Stilo, suponía el viraje de acontecimientos necesarios para cambiar la imagen de la marca, con un modelo de gran equipamiento y tecnología superior a los competidores del tradicionales del segmento. Con relación al mercado, se observa una clara tendencia a aumentar el consumo en el segmento C siendo el de mayor volumen, aquí se consolida la imagen de marca, frente a una disminución en el A y B donde se encuentran los modelos de mayor peso en Fiat. Después de realizar una retrospectiva de los productos pasados, se entiende una mala utilización del marketing-mix: el producto no llegaba a los target deseados. El segmento C es el más competitivo, liderado por Citröen Xsara y Opel Astra en 3 puertas y Citröen Xsara y Renault Megane en 5 puertas. Siendo sus principales motivos de compra precio, diseño y equipamiento. El cliente de este segmento esta divido en tres sub-segmentos: Tres puertas: Joven, soltero y con nivel socioeconómico polar. Cuatro puertas: Mayoritariamente varón, mayor que el anterior, nivel medio-alto y con dos o más coches en la familia. Cinco...
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...Shifting Gears in the Auto Industry Question One Prior to taking over Chrysler, Fiat was an international business – exporting cars out of Italy to other countries and engaging in joint ventures around the world, including an extremely unprofitable partnership with GM in 2005. The brand had a negative reputation in the United States, and it was senseless for the brand to invest resources in the American car market. By 2006, however, Fiat was turning a profit, and in 2009, the company was named one of Fortune magazine’s most admired companies and became Europe’s third-largest car company and the ninth largest in the world. As Fiat experienced this massive success, transforming into a true multinational business became a viable option. Purchasing the struggling Chrysler brand was a logical way for Fiat to truly become a part of the American automobile market and become a multinational company. Instead of merely exporting cars to the US or entering a joint venture with a US automobile maker, Fiat is able to have full operations in the United States using Chrysler’s existing resources. The merger was practical for both brands, as Chrysler desperately needed resources, and by buying out Chrysler, Fiat gained access to Chrysler’s network of distribution channels in the United States and the brand recognition of Chrysler. As a multinational business, Fiat will still be able to adapt product offerings and strategy for each country, but will have better access to the markets of each...
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...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 the...
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...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...
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...IUBAT- International University of Business Agriculture and Technology I. Current Situation A. Current Performance Chrysler is an American automobile manufacturer headquartered in Auburn Hills, Michigan and owned by Italian automaker Fiat. Chrysler is one of the "Big Three" American automobile manufacturers. It sells vehicles worldwide under its flagship Chrysler brand, as well as the Dodge, Jeep and Ram. Other major divisions include Mopar, its automotive parts and accessories division, and SRT, its performance automobile division. In 2014, Chrysler Group LLC is the seventh biggest automaker in the world by production. In 1998, Chrysler merged with German automaker Daimler-Benz AG to form DaimlerChrysler; the merger proved contentious with investors and Chrysler was sold to Cerberus Capital Management and renamed Chryvgsler LLC in 2007. Like the other Big Three automobile manufacturers, Chrysler was hit hard by the automotive industry crisis of 2008–2010 and filed for Chapter 11 bankruptcy reorganization on April 30, 2009. On June 10, 2009, Chrysler emerged from the bankruptcy proceedings with the United Auto Workers pension fund, Fiat, and the U.S. and Canadian governments as principal owners. Over the next few years Fiat gradually acquired the other parties' shares while removing much of the weight of the loans (which carried a 21% interest rate) in a short period. By May 24, 2011, Chrysler had repaid...
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...Marketing Research Project Report On IMPACT ON SALES OF SMALL CARS DUE TO DIESEL VARIANTS By Abhay Raj Singh ,AdityaKapur , ParakramSingh , Saurav Haldar and Vikram Sharma A0102210005,A0102210177,A0102210051 ,A0102210106,A0102210012 MBA – M&S Class of 2012 Under the Supervision of Dr. R. S. Rai Assistant Professor Department of Decision Sciences In Partial Fulfillment of Award of Master of Business Administration AMITYBUSINESSSCHOOL AMITYUNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA AMITY UNIVERSITY UTTAR PRADESH AMITYBUSINESSSCHOOL DECLARATION We Abhay Raj Singh, Aditya Kapur, Parakram Singh, Saurav Haldar & Vikram Sharma students of Master of Business Administration in Marketing & Sales from Amity Business School, Amity University Uttar Pradesh hereby declare that we have completed our Market Research project work on “IMPACT ON SALES OF SMALL CAR DUE TO DIESEL VARIANTS”. We further declare that the information presented in this project is true and original to the best of our knowledge. Vikram Sharma SauravHaldar AdityaKapur Parakram Singh Abhay Raj Singh Date: 26/03/2011 Place: ABS MBA-M&S Class of 2012 AMITY UNIVERSITY UTTAR PRADESH AMITY BUSINESS SCHOOL CERTIFICATE I Dr. R. S. Rai hereby certify that Abhay Raj Singh , Aditya Kapur, Parakram Singh, Saurav Haldar & Vikram...
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...RESEARCH ON INDIAN HATCHBACKS BY KUNTAL CHOWDHURY PGDM FS; ROLL NO - 12 THE INDIAN HATCHBACKS A Detailed Analysis of the Hatchbacks in the Indian Automobile Market(An Independent Study) AUGUST 2012. TABLE OF CONTENTS 1 | Introduction | 2 | Market Share | 3 | Participants | 4 | Brand Overview | 5 | A Segment | 6 | B Segment | 7 | B+ Segment | 8 | Slogans Of Brands | 9 | Conclusion | A hatchback is an automobile designed such that the boot is integrated with the cabin space. The Indian hatchback market is growing each day. Any car maker who is looking for significant volume has a hatchback model in its bucket. The financial year 2010-2011 has seen good growth among hatchbacks in the country. The companies such as Honda and Toyota are keenly eyeing the hatchback space in India. Honda has recently launched the Brio, while Toyota recently launched the Etios Liva. Honda’s premium hatchback, the Jazz, however, has not won much favor with customers and sales have dropped 35 percent year on year. Among hatchbacks in India, Maruti Suzuki is the most dominant player followed by Hyundai and then Tata. Maruti’s Alto is the country’s and the world’s largest selling hatchback, at 346,840 cars being sold in India last year, a growth of 47 percent. The second-largest selling hatchback in the country is again from Maruti – the Wagon R. However, the Wagon R has close competition from the Hyundai i10, which is just behind it, though the i10 hasn’t grown as much...
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...April TRAINING EXECUTIVE EXECUTIVE BUSINESS SIMULATION MARKET RESEARCH MARKET RESEARCH PACKAGE FOR THE EUROPEAN PASSENGER AUTOMOTIVE INDUSTRY 2009-2010 Release 9 MARKET RESEARCH MARKET RESEARCH PACKAGE FOR THE EUROPEAN CAR INDUSTRY THE EUROPEAN CAR MARKET The European motor industry is the world's largest car market, having exceeded the US market in total units sold (excluding light trucks). It is also an extremely competitive arena. Some of the patterns to emerge from this market over the last few years are listed below. 1. Sales Figures1 Historical and Current The last strong rise in sales was in 1998 (14.3m), continuing into 1999, however, in 2000 sales fell by 2.2% (14.7m) and stayed at this level in 2001. In 2002 sales fell by 3%, 2003 saw an increase of nearly 5% but this was a result of an expanding marketplace, in reality there was another fall of 1% when comparing sales in the same EU member countries. 2004 saw a genuine 2% increase in registrations, remained stable in 2005, showed a substantial 4% rise in 2006 but then the percentage increase dropped to 1% in 2007. In 2008 European car sales figures were easily the worst for over a decade: 14.6m in extended Europe, 13.6m in the core economies, a drop of 8.2% and 8.1% respectively over 2007 figures. Gloomy forecasts for 2009 proved to be well founded with the whole market falling by a further 0.7% to 14.5m, however, the market excluding the new EU countries did show a 0.7% improvement to 13.7m...
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...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 concern they would receive an 8% stake in the company. The Canadian and Ontario governments would also receive a 2% stake. Analysts believe that the major reason for Chrysler’s financial problems resulted from their poor business strategy, lack of innovation, and the global financial crisis. Chrysler’s failed marketing strategy failed to produce vehicles to meet the needs of consumers....
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...Annual Report At 31 December 2013 108th financial year Annual Report At 31 December 2013 All our reports are available at http://2013interactivereports.fiatspa.com Go to the online version of the Fiat Annual Reports to learn more about the Group's financial performance, sustainable development and other corporate information. | | Download our app www.fiatspa.com/mobileapp 3 General Meeting An Ordinary General Meeting of Shareholders will be held at 11 a.m. on 31 March 2014 (single call) at Centro Congressi Lingotto, Via Nizza 280, Turin to vote on the following: Agenda 1. Motion for Approval of the Statutory Financial Statements and Allocation of 2013 Net Result 2. Compensation and Own Shares: a) Compensation Policy pursuant to Article 123-ter of Legislative Decree 58/98 b) Authorization for the Purchase and Disposal of Own Shares Attendance and Representation Shareholders are entitled to attend the Meeting if they hold the right to vote at the close of business on the record date of 20 March 2014 and the Company has received the relevant confirmation of entitlement from an authorized intermediary. As provided by law, shareholders entitled to attend the Meeting may also be represented by proxy. The Company has appointed Computershare S.p.A. (Via Nizza 262/73, Turin) as the Designated Representative, pursuant to Article 135-undecies of Legislative Decree 58/98, upon whom shareholders may confer proxy and instruct to vote on all or some of the motions on the agenda...
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...7 PEEST 8 VRIO 10 Competitor Overview 12 Alternatives 12 Decision Criteria 14 Implementation 16 Contingency 19 References 21 Exhibits 22 Executive Summary Alfa Romeo, a company steeped in automotive performance history is being evaluated for re-entry into the North American and specifically Canadian consumer market. The company was founded in 1910, and has been producing high performance vehicles to present day. To-date its sales focus has been focused on the European market, with over 90% of units sold in Europe. It was acquired by, then Fiat Group, in 1986 from this acquisition a partnership was brokered between Fiat and Chrysler Motor Company in 1988 for exclusive rights to sell Alfa Romeos through Chrysler dealerships from 1988 to 1995, at which time Alfa Romeo pulled out of the North American market. In 2015, due to the recent partnership between Fiat and Chrysler and the creation of Fiat Chrysler Automotive Group, Alfa Romeo is returning to North America. Three key problems have been identified that must be overcome for Alfa Romeo to be successful in the Canadian market place and North American market overall. The first is to develop strong brand recognition, the second is to achieve market share in the North American and Canadian market specifically, and finally the venture into Canada and North America must prove to be profitable. From the analysis, it is evident that as in Europe the North American and Canadian market is fierce with competition...
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...Marchionne had to manage for a crisis. With Chrysler in bankruptcy and no profitability, when he came to be the CEO, he had to direct the company out of a dangerous time. He had to direct the company in a way that increased profits long term, while those around him just wanted to give steeper discounts. He decided that teaming up with Fiat, breaking even in 2010 and finally pulling profit in 2011 was the way to go. Not only did partnering up with Fiat help in a crisis situation, it enabled him to manage for a competitive advantage, by marketing a smaller, sportier Italian car, he was able to fulfill a niche in the market that was previously not as widely available. 2. Mr. Marchionne definitely filled the filled the Leading function in the overall managing process. By choosing an office where the engineers were located, he was better involved and immersed in the process. Allowing him easy access to steer the company in a better direction. He also held weekly meetings with his team to better motivate and guide them in a direction that he thought was best. 3. He played a decisional role in the company, he was the one to partner up with Fiat when his predecessors wanted to attract customers with discounts that could only hurt them long term. He was realistic in seeing where profits were heading in the upcoming years and was able to make that executive decision for the better of the company for the future. Not only did he fulfill the decisional role, but also the interpersonal...
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