With the possibility of Fiat doing a strategic tie up with Chrysler in the US automarket, does anyone think this will be a successful long term partnership.
Strategic tie up between the European auto manufacturers and the US auto industry have not been successful.
1) Why are they doing this deal, will it allow Chrysler to gain access to capital, financial IP or do Fiat have some new Eco technology?
2) Fiat are a small car producer, with a terrible history in mid size and luxury cars, do they expect to share Chrysler platforms and to help them fill their product gap, or rebadge US cars for Europe. This is not a good strategy as happened with Rover and and Honda in the past.
3) Fiat are looking to rebuild distribution channels in the US, they were not successful in the 80's when they sold cars in the USA.
4) Eventhough it is a non cash deal for Fiat, do Fiat really want to enter the US automobile market where in the next few years it may end up subsidising a poor performing brand because the two larger US brands, GM and Ford have larger market shares and can compete across a broader range of models?
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