Some may be confused at the joining forces of Fiat and Chrysler, however, from a business perspective, this was a good move (for the most part.) If you’re still skeptical, read on for a few ideas of why Fiat made the right move.
Better Scale to Take on General Motors
For years, Chrysler was struggling to compete with General Motors in the market. Now, with the Italian market behind Chrysler, Fiat can successfully help the company to do even better in the market with its streamlined, high-quality vehicles.
A Tighter Bond
Now, Chrysler, whose sales have already increased with help from Fiat, will be in even tighter cooperation with Fiat’s Italian brands Alfa Romero, Lancia, and Maserati. This will provide more leverage in both Italian and American markets for the auto company to do what needs to be done to make even better sales.
Valuation Will Increase
Now, with Fiat owning Chrysler, Americans will still see Chrysler as an American company, and Chrysler, because it will be listed in New York, will have broader appeal. It will garner investors from around the world this way.
A Global Marketplace
Chrysler will now be able to compete in a global marketplace, where before it was floundering. In its first full year under Fiat’s control, Chrysler profits rose up to 70%, and its international appeal is sure to strengthen it as a market. Chrysler didn’t have much of a chance of succeeding in the global marketplace before, but that will all change now that they have Fiat to carry them.
Better Working Conditions
The CEO of Fiat expects that working conditions for Chrysler employees will improve, based on a recent statement at the time of the merger. All employees desire to work in refreshingly challenging and rewarding conditions, and as Chrysler will now be profiting more, then Fiat will be able to extend a promise to Chrysler employees that this will be a better place to work—period.
Improving Fiat’s Reputation in the U.S.
As Fiat intends to list on the New York market now, more people will invest in Fiat-Chrysler, making sales of both vehicles more promising in US markets. While many intend to support Chrysler, the Fiat name will go along with that support, making their Italian cars more likely to be considered by many US buyers.
As you can see, there are six main reasons why the Fiat-Chrysler merger was a good idea. Now that Fiat owns Chrysler, the reputation of both will achieve even more global prominence, and there will be plenty of luck in the market due to timing, international reputations, and rewarding work experiences for laborers. Informational credit for this article goes to the professionals from subarupartsforyou.com, auto experts who specialize in Subaru parts.