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Old 20th May 2016, 23:21   #31
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Default Re: Fiat-Chrysler looking for a merger - Who is the best fit?

Originally Posted by CrAzY dRiVeR View Post
FIAT probably swallowed more than it can digest, when it acquired the ailing Chrysler to try and turn it around. But more than that, their long product refresh cycles in the international market has been the biggest weakness of the brand since long.
Their inability to refresh product cycles and extremely poor marketing are the key reasons. The Premier Padmini and NE 118 (Fiat 124) succeeded due to literally zero competition. As a very small kid in the early 90's we did have a Premier Padmini and it was a great car for its time even though it was 2 decades behind time when it arrived in India.. spacious, solid and super comfortable and that remains my sole connection with Fiat.

Brands that came later on like Maruti-Suzuki's 800, even though quite inferior to a Fiat (we owned an 800 too and the Padmini was superior in every which way including space and power), still succeeded because of the newness factor - bucket seats, floor mounted gear shifters and superb mileage along with good service support turned 800 into the national car by snatching the title from Fiat quite easily. Subsequent products by Fiat which included the Uno, Palio, Petra etc suffered from bad sales and service support and were late to the game by a few years where Maruti had already launched the Esteem, 1000, Zen etc. Punto and Linea too suffer from the same fate, both were/are ahead of their time.. but were never tweaked, updated, marketed and hence never appreciated as well.

Fiat as a company is going nowhere, their main income is from Ferrari, a company they acquired not created. I know this room has a huge fan-base of Sergio Marchionne but he is exactly what his education is, a chartered accountant. He knows the numbers and he's very very conservative about them, definitely not an adventurous leader focussed on expansion and growth, rather someone who'd pick the ripe cherries and play it safe. His latest move on finding an industry partner is his best yet and I hope for any company other than VW to buy a stake in Fiat-Chrysler soon. Otherwise we'll end up with a Polo re-badged as a Punto.

Last edited by dark.knight : 20th May 2016 at 23:22.
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Old 14th June 2016, 13:03   #32
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Default Re: Fiat-Chrysler looking for a merger - Who is the best fit?

Automobiles CEO Sergio Marchionne is still on the lookout for a merger with another automaker. He firmly believes consolidation is the only future for the industry, or at least for his company, but he canít find anyone willing to team up with him.

GM said no thanks, and Ford said no before anyone even asked. Marchionne still sees Volkswagen and Toyota as potentials, but neither has much incentive to take him on.

There is one company out there, though, that might be both the right fit and the right amount of desperate: PSA.

FCA bluntly seems not interested in PSA
We realized that even though there was a certain advantage in an association with PSA, it was an advantage that was too little and that in effect would limit the choices open to FCA going forward
PSA puts it more diplomatically
Tavares, for his part, was less dismissive and has simply said he hasnít talked to FCA about a merger
With Toyota and VW not interested in the merger nor tie-up, both ( FCA and PSA) may need to reconsider their positions, Marchionne in particular!

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