The merging of the two world-known carmakers, Fiat and Chrysler, is taken to a new level, by sharing the same managment structure.
According to the chief executive officer of both companies, Sergio Marchionne, Fiat and Chrysler will have to reduce costs and achieve a target of more than 100 billion euros combined, by 2014.
“No one is better than Marchionne at selling an auto story”, said Stephen Reitman, analyst for Societe Generale. “The current stock price already discounts most of the good news to come from Chrysler and ignores much of the risk”, said Reitman.
Fiat has big plans and after it was initially granted a 20 percent stake in Chrysler by the United States government, it aims up to 57 percent of the overseas car manufacturer by the end of this year, when, according to the European company, the United Auto Workers union’s trust will have almost 42 percent of Chrysler.