...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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...Fiat plays double or quits with Chrysler Introduction Below are two articles about the merger between Fiat and Chrysler. Please read these and analyse them in the context of TWO of the theoretical frameworks ( One from OS, One from HR) which have been reviewed and considered in this course. Your answer should include: A brief summary of the relevant theories, and any evidenced based critique of those theories You should then apply those three concepts to this case study, so as to illustrate how they apply, or may be contradicted, in the Fiat –Chrysler merger. From The Economist, 27 November 2010, P 73-74 IN JANUARY Fiat cars will be back on sale in America for the first time in 27 years. The tiny, retro-styled Fiat 500 will appear in the showrooms of 130 dealers across the country. It was launched at the Los Angeles motor show last week, alongside a revamped Chrysler range. Fiat’s return to America is the first visible result of what is intended to be an ever closer union with Chrysler, agreed on last year when the Detroit giant was in bankruptcy. The two companies are betting that the Fiat 500—designed by Frank Stephenson, the man behind BMW’s transatlantic success with the MINI—will also prove as popular with Americans as it has with Europeans. Returning to a country from which Fiat was driven out by poor quality—Americans used to quip that its name stood for “Fix It Again, Tony”—is a big risk. But the reward is to get back into one of the world’s largest...
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...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 LLC group in 2009. Currently the group is present in the USA, with the brands Chrysler, Dodge, Ferrari, Fiat, Iveco, Jeep and Maserati. The next step of this global strategy is the come back of Alfa Romeo on the US market. The group aims to reintroduce the brand in the USA in 2013. With this come back, Alfa Romeo expects to sell 400,000 around the world in 2014 and to increase its...
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... January 18th, 2015 Chrysler, Fiat and GM are OEM automotive producers. Both GM and Chrysler are considered one of the top automotive companies being GM number one and Chrysler who is lagging behind Toyota and Ford as the number four OEM automotive producers. However all three GM, Chrysler and Fiat were struggling to maintain and gain more market share. It was definitely a competitive in trying to gain more market share between GM and Chrysler. Fiat who is also an Italian OEM automotive producer also had its issue as well in keeping market share in Italy. Fiat also had their own issues in Italy with trying to stop the bleeding of losing money to where the Italian government had to bail them financially back in the day as well. So anyone would think that a merger between either of these companies could serve to be a win-win for both. But that only happen in one scenario. With both GM and Fiat struggling to hold market share in there perspective regions they decide to hold talks about the two companies merging. Sometime in 2000, GM and Fiat decided to enter into a joint venture or some may call it entering into an alliance. GM had acquire a 20% stake in Fiat and Fiat had acquired only 6% of GM. (GM Pays to Walk Away, 2005) GM entered into this alliance to try a save their Latin American Division from declining sales and Fiat entered into this alliance to try and save their division who was also losing money and had declining sales. However, I can’t recall...
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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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...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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...Opportunities and Challenges Facing FIAT to Enter Ukraine Opportunities and Challenges Facing FIAT to Enter Ukraine Report Team: NO.10 Italy Class period: Tuesday 8, 9 Team Member Zhou Wen Duan Jiaqi Han qingxiu English Name Cookie Todd May Student Number 41006044 41032003 41029021 Contact Information 289192701@qq.com 917686559@qq.com 304593546@qq.com 1 Opportunities and Challenges Facing FIAT to Enter Ukraine Executive summary The report is going to analysis the opportunities and challenges facing FIAT to enter Ukraine automobile market. We first identify the strength and weakness of global strategy of Fiat with the SWOT analysis (Appendix 1) to find out entering Ukraine could contribute to Fiat’s global strategy, and then we evaluate the investment potential in Ukraine with PEST analysis (Appendix 2) to find out that Ukraine government is encouraging foreign investment by incentive policy and regulation, moreover, the automobile market in Ukraine is large. However, under the condition of financial crisis, the trade protectionism is on the rise in Ukraine, making the existing competition fiercer than before. To solve the problem, we suggest Fiat to export light vehicle and manufacture installation kit by joint venture to minimize risk and mitigate challenges. Besides, the board should pay attention to balancing the relationship among local government, local employees and management layer. 2 Opportunities and Challenges Facing FIAT to Enter Ukraine Content Ⅰ...
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...important among the economy. Continuously rising in the market for automakers can be challenging as these elements are strategically supported to progress in this market. The global automotive industry offers plenty of business drama, and Fiat’s recent purchase of Chrysler’s assets, one of the United States “Big Three” automakers, is enough of drama to produce a trilogy at the theater, with each movie running for two and a half hours. This horizontal merger, or partial horizontal acquisition, entails the United States (US) Governments involvement with its ailing domestic automotive industry. At the core of this merger is the inability of the US automakers to match the aggressive technological advancements of its global competitors like Fiat. Small, fuel-efficient cars are expected to save Chrysler as the following statement explains: "Work is already underway on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward," the company...
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...Running head: TATA FIAT Tata Motors and the Fiat Auto: Joining Forces Tata Motors and the Fiat Auto: Joining Forces Tata Motors (TM) and Fiat Auto S.p.A (Fiat) are large auto manufacturers. It is described as the transformation of TM from a commercial vehicle manufacturing company to a leading passenger car company in India, and its forays into global markets. The case details the growth of Fiat, the problems the company faced, and the strategies it adopted to tackle these problems. It discusses the alliance between the two companies, and the benefits and costs from the alliance for each company. India The fiat Group’s association with the Indian automobile market began in 1905 when it appointed Bombay Motor Cars Agency as the sales agent for its cars in India. In the 1950s, the Fiat Group entered into a license agreement with India-based Premier Automobiles Ltd. (PAL) to manufacture its cars. Fiat Auto formally entered the Indian market in 1997 through a joint venture with PAL. The joint venture would benefit both parties; TM would gain in terms of better accessibility to technology, design, and global markets, while for Fiat Auto, it would mean a larger presence in India, one of the world‘s fastest growing auto markets, without heavy investments. Also, with Honda, Toyota, GM, Mitsubishi, M&M/Renault, Nissan, Skoda, etc., chalking out plans to enter the small car segment, especially the premium small car segment, it seemed likely that the TM-Fiat Auto joint venture...
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...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 very...
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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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...automotive industry and earn what was considered a competitive wage. The internal and external challenges for the FCA LLC (Fiat Chrysler Automotive) company in recent years have caused the company to take on a systematic approach to building and maintaining a profitable business. The discovery of the root cause for the FCA turn around can be found in the leader CEO Sergio Marchionne. In the paper, we will review his top three leadership practices, and perform SWOT analysis of the FCA- North America organization. The FCA- North America LLC has its headquarters in Auburn Hill, Michigan. The FCA- North America divisions include SRT, Dodge, Chrysler, and Ram. The primary products made by this company are SUVs, trucks and automobiles. The Dodge autos include the Dart, Challenger, Charger, and the Avenger. The Chrysler autos include the 200, the 300, Town and Country. The Ram Truck line includes Ram 1500, 2500, 3500. The SUV lineup is Jeep, Dodge Durango. The FCA- North America LLC product has a target of the general public as well as the commercial side to meet the needs of the business sector. In 2006, Chrysler Group LLC was in a terrible financial position and filed for bankruptcy. Chrysler Group LLC was too big to fail was the excuse that led to the U.S. Government to be part owner in the Chrysler Group LLC. Part of the restructure agreement, was the Fiat S.P.A. was, in short,...
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...Case Study: Sergio Marchionne What are the observable artifacts, espoused values, and basic assumptions associated with Chrysler’s culture? An observable artifact is defined as the physical manifestations of an organization. These artifacts can include a company’s dress code, stories about the company, and rituals within the company (Kreitner & Kinicki, A.2013). The main observable artifact that Chrysler had, and the reason Mr. Marchionne was in distress was about, was the way manager Fong doubled rebates in order to make profit from the dealership sales. This approach was part of the culture that led the company to diminished lucrativeness. Another observable artifact came with the changes Mr. Marchionne implemented, such as his weekly meetings with his staff. Espoused values can be defined as the normal standards in which a company conducts business. A few of the espoused values mentioned in the text are, “the margins and vehicle quality needed to improve and better control over pricing was imperative” (Kreitner & Kinicki, 2013, p.87). Mr. Marchionne went to Chrysler to change these values to make the company profitable again; Basic assumptions are the values of a company that have not been followed and begin to represent the company’s behavior (Kreitner & Kinicki, 2013, p.87). Mr. Marchoinne implemented major changes at Chrysler by expelling executives, removing its bureaucracy and adding fear to the workforce. How is Mr. Marchionne trying to improve the PE...
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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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...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 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...
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