Fiat Plays Double or Quits with Chrysler
In January, Fiat cars will once again be available in America nationwide; the first time in 27 years. Returning to a country from which Fiat was driven out as a result of poor quality is a big risk. But, the reward of becoming a part of one of the world’s largest markets is, according to Fiat, decidedly worth it. Fiat recently acquired 20% of Chrysler as part of a rescue tactic, which will increase to 35% in the near future. Merging with Chrysler means sharing development costs and technology, which is a bonus. However, this also means having to turn around an ailing firm with serious competitor-related problems of its own. In short, Fiat is playing double or quits. While obviously risky, these bold steps may, however, be the only guarantee of its survival.
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