п»їCASE 2/ Fiat The chrysler alliance
1/ Strengths and weaknesses of Fiat GMC alliance
Fedex was near bankruptcy (no sustainable position)В;
GM got 20% and Fiat received a set optionВ; explainВ?
Relations damaged (operations phase), GM started to be less interestedВ: Alliance was not equalВ;
The gross in the company have been different (different cycle and country)В;
2/ Strengths and weaknesses of Chrysler Daimler alliance
Combination of equals, however Daimler baught Chrysler for bn$ 36В; isnt' it surprisingВ? the way they experienced construct the offer is not really equal Pb since the starting due to ethnic problems, executive approaches and operational strategies, Daimler administration dit not really consider it a merger of equals,
Hardly any platform posting occured,
The chrysler market share fell to 11%,
Mercedes offered 80% control to Cerberus, which attempted to turn the organization around devoid of succes,
3/ Explain the FIAT Chrysler deal; financing, governance, SWOT Which are the important success elements?
How the deal was structuredВ? Fiat is definitely starting to talk to Chrysler. Make certain that they will be complementary. At each stage of the offer, there are key things that they should not avoid to talk.
Buying a broke company devoid of cash, (but they have to place resources, paltforms, networks, technology, skills) Unions, government are involved,
Marchione CEO of Fiat & ChryslerВ; why is it keyВ? to implement decisions very quickly. Complete administration control, Fedex with 20% stake, upgrading to 51% based on milestones, Fiat supplying its tiny platforms and engine technology and Euro and south american systems,
Explain the FIAT-CHRYSLER dealВ; synergies
Complementarity to reach 6 Mio vehicles produced geographical complementarity (US for Chrysler, EU and Brazil), igual for merchandise portfolio (A, B for fiat, M, E, gathering, minivan, SPORT UTILITY VEHICLE (SUV) for Chrysler), Extensive and buying synergies,
Significant improvement in quality and productivity,
Improvement in architectural...