Fiat Of A New Alliance Essay

Fiat Of A New Alliance Essay

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Fiat faced one of its best time in America Industry with its eminent techniques around the world. When the opportunity of a new alliance was masterful to set a new system to rise its name in the automobile industry, there was no other option to apply the new alliance strategically . For the other side, FCA US LLC, better known as Fiat Chrysler or just Chrysler, cannot compare their demand with GM and Ford; leading it as the “Number Three” in the North American market. Due to the fact of this disadvantage, Chrysler was focus in to get out of that ranking when the first two automobile companies were improving their actual models letting Chrysler behind the scene. When the new alliance was present, I think it was the master key to let just the shadow of the “Number Tree” beyond and promote a new tendency in the auto industry with excellent results due to the fact that both Chrysler as Fiat got benefices to advance more than two automobile companies in the competitive field. The alliance generates new ideas which both of them can work jointly with the new technology and become bigger target worldwide.
One fact in the automobile industry is that few companies are trying to innovate with small size cars as Fiat and Chrysler, so I think this can open the adequate door to the market and being one more time in the top auto industry. One year later, the CEO of the Fiat and Chrysler, Sergio Marchionne, mentioned the the result of the alliance was more than the third quarters of their expectations which means their earning were more than they estimated them. In the 2010, both companies earned $700 million which their expected break even was $200 million. Based in the results, I can say that Chrysler-Fiat strategic alliance can been progress...

... middle of paper ...

...leadership relationship with other auto industries. I can say that in a short term of 1-2 years might be leading better results with new ennovations if they keep working together. Also in the long term of 5-6 years their expectations will be reached, but also their results will be over the anticipated goals. They are not a giant brands, but with the short time together have showed amazing results. With this case, I could prove how small companies can get stronger if powers are put together instead of work for a big goal with few tools. If a company wants big results; its effort has to be bigger than its ideas. The best way to reach this is to combine the abilities from each company and jointly work for a same objective.. Even tought future is inciert, only the time would let see if Chrysler- Fiat alliance was the best way for those companies and the actual economy.

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