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Published by: IBS Research Center
Published in: 2009

Abstract

On 20 January 2009, the Italian Fiat and US automaker Chrysler LLC announced that they have a non-binding term sheet to form a global alliance. According to the deal, the Italian automobile empire would get a 35% stake in the US car maker. The alliance would help Fiat to gain access to US markets and also to more competitive products in the automotive industry. For Chrysler the deal would mean breaking out of the US market where its independent survival is at stake. From this strategic deal Chrysler hopes to bounce back from deteriorating losses subject to slow selling trucks and sport utility vehicles. The case focuses on the journey of Chrysler and also brings forth the contribution this alliance would bring about.
Location:
Industry:
Other setting(s):
2008

About

Abstract

On 20 January 2009, the Italian Fiat and US automaker Chrysler LLC announced that they have a non-binding term sheet to form a global alliance. According to the deal, the Italian automobile empire would get a 35% stake in the US car maker. The alliance would help Fiat to gain access to US markets and also to more competitive products in the automotive industry. For Chrysler the deal would mean breaking out of the US market where its independent survival is at stake. From this strategic deal Chrysler hopes to bounce back from deteriorating losses subject to slow selling trucks and sport utility vehicles. The case focuses on the journey of Chrysler and also brings forth the contribution this alliance would bring about.

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Location:
Industry:
Other setting(s):
2008

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