Chrysler, Fiat Finalize Global Strategic Alliance

Sergio Marchionne should be really proud of what he has done in the United States, with Chrysler, one of the largest automakers in the country, now operating under Fiat's umbrella. In addition to the managerial changes we told you about earlier this day, the two companies also announced that they have managed to finalize the global strategic alliance announced in January. Furthermore, the new Chrysler "emerges as a stronger, more competitive global company" that will rely its operations on four core brands: Chrysler, Dodge, Jeep and Mopar.

As part of the deal, Fiat receives a stake of 20 percent in the new Chrysler, but the Italian manufacturer's equity interest might be increased to up to 35 percent. However, Fiat cannot obtain a majority stake in Chrysler unless all taxpayer funds are repaid which, according to analysts, might take up to several years.

“This is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole. From the very beginning, we have been adamant that this alliance must be a constructive and important step towards solving the problems impacting our industry. We now look forward to establishing a new paradigm for how automotive companies can operate profitably going forward," Sergio Marchionne, who will now serve as Chrysler CEO, said.

"We intend to build on Chrysler’s culture of innovation and Fiat’s complementary technology and expertise to expand Chrysler's product portfolio both in North America and overseas. Those Chrysler operations assumed by the new company that were idled during this process will soon be back up and running, and work is already underway on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward," he added.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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