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This is part of a case series. This case discusses two events that would contribute to Magneti Marelli's continued growth - the 1994 merger with Gilardini and the car industry's globalisation. On one hand, the merger set the stage for Magneti Marelli to move ahead with its strategy of growth through innovation. Gilardini, having recently divested its aerospace and defense activities, would provide Magneti Marelli with a substantial reserve of cash along with its advanced electronics expertise and research capabilities. Magneti Marelli would provide Gilardini with a large international customer base and the opportunity to leverage its high-technology research competence. On the other hand, the car industry was becoming increasingly global which meant that Magneti Marelli needed to adopt a globalisation strategy to remain competitive as a world-class automotive component supplier. This case describes their strategy and then concludes by pointing out the challenges that lie ahead for Magneti Marelli.