/ Chrysler, Fiat, Industry, News / Fiat-Chrysler deal marks a new beginning

Fiat-Chrysler deal marks a new beginning

Linked In Share
Fiat-Chrysler deal marks a new beginning

Fiat’s deal to take full control of Chrysler on better-than-expected terms has cemented CEO Sergio Marchionne’s dealmaking reputation, but he might face a bumpy road on its drive into operational success for the business.

The toll taken by two years of talks and an accompanying investment freeze has already delayed the Italian carmaker’s recovery, and as Marchionne has said he might retire in 2015, his legacy could depend on how his successor plays the hand.

Under the $4.35 billion deal unveiled on New Year’s Day, Fiat will acquire the 41.46 % of Chrysler it does not already own from the United Auto Workers (UAW) union’s retiree healthcare trust.

Now, Italy’s industry minister said the deal should be a premise for it to complete investments it had already planned in Italy.

“The agreement is the premise for the new Fiat-Chrysler group to further consolidate its position in Europe and internationally, putting the factories, know how and Italian technology at the center of its growth strategies,” Industry minister Flavio Zanonato said in a statement.

Fiat has said it plans to build Jeeps and a new line of Alfa Romeos in Italy for export to markets in Asia, Latin America and the United States to offset flagging demand in crisis-hit Italy and to conserve jobs.

Still, analysts, predict that Fiat shares which got a 16 % boost from the deal on Thursday, would hereafter be kept in check by the scale of the task ahead.

Getting access to Chrysler’s cash and industrial scale is critical to Marchionne’s expansion plan for the Alfa Romeo and Maserati brands, designed to help Fiat’s idling Italian plants export their way out of trouble. But Marchionne’s determination – some say obstinacy – in holding out for the right price has led to costly delays for Fiat’s investment and recovery plans. And the Italian factories are still waiting as they tick along at just 41 % of capacity, according to 2013 estimates from IHS Automotive.

While completing the Chrysler buyout may be his last big stunt for Fiat and its controlling Agnelli family, it could well be his successor who has to navigate the complex realities of a cross-cultural car merger, which have proven insurmountable for many other pairings.

Via Reuters

by Aurel Niculescu (my Google+) - Friday, January 3rd, 2014 - filed under Chrysler, Fiat, Industry, News. Image credit: .
Linked In Share
Related Articles
Chrysler deal Fiat


Discuss: Fiat-Chrysler deal marks a new beginning

Leave a Reply


















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Chevrolet delightfully congratulates Mustang on its 50th anniversary
Chevrolet delightfully congratulates Mustang on its 50th anniversaryWhile in the US the law lets rival companies take direct swings at each other, this time around the rivalry took a different ...
Chevrolet finally brings the Trax to the US
Chevrolet finally brings the Trax to the USWith other markets seeing the small crossover since 2012, GM so far has been reluctant to bring the Trax model in the US. Now, ...
Ferrari plans hardcore LaFerrari
Ferrari plans hardcore LaFerrariFerrari is planning to introduce a track-focused version of the impressive LaFerrari, which will get some interesting ...
Skoda CitiJet Concept announced
Skoda CitiJet Concept announcedSkoda has recently announced its plans to introduce the CitiJet Concept next month, at the Worthersee tuning event. The 2014th ...
Next-gen Mazda MX-5’s chassis revealed
Next-gen Mazda MX-5’s chassis revealedMazda has officially revealed the chassis of the next-generation MX-5, ahead of its public debut which will take place at the ...
Saab starts making the electric 9-3
Saab starts making the electric 9-3After it was bought by Chinese-Swedish company National Electric Vehicles Sweden, Saab began recovering its fortune slightly and ...
Porsche 911 GT3 RS spied
Porsche 911 GT3 RS spiedThe 2015 Porsche 911 GT3 RS has been recently caught on camera and it’s getting ready to make its public debut over the ...
Toyota claims Corolla is the best selling nameplate
Toyota claims Corolla is the best selling nameplateWhile just last week we brought you the news that Ford’s Focus kept for 2013 the title of the world’s best selling nameplate, ...
Audi RS3 caught testing
Audi RS3 caught testingOur spy photographers have managed to capture the new Audi RS3 on camera, while it was being tested outside the ...
Jay Leno and his McLaren P1 arrive at Supercar Sunday
Jay Leno and his McLaren P1 arrive at Supercar SundayFamous petrol head Jay Leno has arrived this weekend at the Supercar Sunday in his brand new ride, the yellow McLaren P1. Jay ...
Peugeot 2008 DKR is getting ready for the Dakar Rally
Peugeot 2008 DKR is getting ready for the Dakar RallyThe French based automaker Peugeot has officially unveiled the 2008 DKR, which will tackle the next year’s Dakar ...
Ford seeks improvements in its in-car technology
Ford seeks improvements in its in-car technologyAccording to Joe Hinrichs, Ford’s president of the Americas, the company is currently making much needed progress with its ...
[VIDEO] New Nissan Sedan Concept teased once more
[VIDEO] New Nissan Sedan Concept teased once moreNissan has released a teaser video with the new Sedan Concept, which will be officially presented to the public on Sunday, during ...
Delphi targeted by US senators seeking GM recall answers
Delphi targeted by US senators seeking GM recall answersWhile General Motors keeps saying all answers will be given after an internal investigation is completed, even though the US ...
Rowan Atkinson seen in his SLS AMG
Rowan Atkinson seen in his SLS AMGFamous British actor Rowan Atkinson has been recently seen in his very own Mercedes-Benz SLS AMG. The 59-year old Englishman is ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Chevrolet adds Trax to growing small vehicle lineup
2015 Porsche 911 GT3 RS Spy Image 1
2015 Audi RS5 Spied 1
Peugeot 2008 DKR 1
2016-audi-a3-sportback-tdi-s-line-photo-589266-s-986x603
Mazda_25th_Anniversary_Edition_EX_001_lead
2015 Infiniti Q70 Image Back View
2015-INFINITI-QX80-08
Aston Martin V8 Vantage GT (1)
AUDI EXCLUSIVE RS7 DYNAMIC EDITION 1
2015 MINI COUNTRYMAN 1
2015 Ford Mustang 50 Year Limited Edition 1

More automotive from inautonews
While in the US the law lets rival companies take direct swings at each other, this time around the rivalry took a different approach, with Chevrolet congratulating out in the open the Mustang for turning 50. The GM subsidiary pays tribute by using their own Camaro muscle car deliver the congrats ...
read more
Inautonews Editors Section
Do you have £200,000? Then you can have the trip of a (hazardous) lifetime
Do you have £200,000? Then you can have the trip of a (hazardous) lifetimeAre you tired of the ever-boring home to work commute? Well, if you’re the adventurous type and can afford the paycheck, the world's most hazardous ...
Check out the everyday cars of St. Moritz – photo gallery
Check out the everyday cars of St. Moritz – photo gallerySt. Moritz is the oldest winter holiday destination in the world – and on the same time it is probably the most expensive ski resorts in the ...
Test Drive: Renault Captur 0.9 – TCe 90 – fast review
Test Drive: Renault Captur 0.9 – TCe 90 – fast review After we’ve tested almost all Renault Captur models, we decided to check out the 3-cylinder engine - 898 cc 66kw (90 hp) model. Why we’ve ...

Editors Section
Inautonews Editors Section
2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video] 2009 safest cars Euro NCAP

Latest in Safety Delphi targeted by US senators seeking GM recall answersWhile General Motors keeps saying all answers will be given after an internal investigation is ... GM launches safety oriented product development unitThe company’s CEO, Mary Barra, announced GM will set up a new global product integrity group ...
Safety Section