Business Case Studies & Business Publications

Fiat and Chrysler: Gaining on Global Aut...

Spekman, Robert E....

Case

Fiat and Chrysler: Gaining on Global Automakers?

Spekman, Robert E.; Fritz, Jacki

M-0780 | Published October 6, 2009 | 20 pages Case

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

This case examines the formation of an alliance between Fiat and Chrysler during the height of the financial crisis as a mechanism to save Chrysler from liquidation. The case traces the events leading up to the alliance, discusses the early stage issues with which the partners have to deal, addresses some of the governance issues, and examines the past merger between Chrysler and Daimler that ended in a failure. The case presents a normative approach to alliance management and conjectures about the success of the Fiat-Chrysler alliance. We address whether Chrysler is a suitable partner and whether there is a strong enough rationale for the alliance and whether the two partners are compatible. Finally, the case explores the lessons learned and the cautions that might derail the alliance.

1) Examine an alliance in the automotive industry to see if the rationale for the alliance makes sense 2) Explore the alliance-formation process to see if the proper steps were taken during the due diligence 3) See what lessons can be gleaned from previous mergers 4) Understand better how alliances can be used to gain competitive advantage