>If The Fiat Deal Flounders, Does Chrysler Have Other Options? Get 0 Now
The news for Chrysler the 1st few days of 2013 was especially bleak: despite getting three billion dollars in federal funding, the automaker would use a hard time surviving after dark first quarter without an extra injection of cash. Even though a fresh Congress continues to be seated along with a new president has brought office, there's not any guarantee that politicians will need to help Chrysler out at night initial loan amount. Constituents are angry while they see private businesses and public corporations bailed out while struggling to make their particular mortgage payments, hold down a job, and give the bills.
Chrysler recently announced a strategic alliance with Fiat, an offer which may bring as many as seven Fiat and Alfa Romeo models on the US market as a swap for giving Fiat 35% ownership of Chrysler LLC. But it is that foreign ownership of Chrysler which includes some unhinged, wondering aloud whether it can be befitting for Congress to guide an overseas owned entity as another 19.9% of Chrysler is owned by the German auto firm, Daimler AG.
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If Congress doesn't approve of the Fiat business arrangement, then Chrysler will not likely be capable to rely on new cars to supplement its fleet in the Italian car company. Without these new cars, Chrysler doesn't possess the funds to produce new models on its own. Without new models, Chrysler will still lose sales and probably find itself going beyond business.
But, Chrysler may have several solutions with it even if your Fiat deal unravels. These include:
Expanding its relationship with Volkswagen. At present, Chrysler supplies a minivan for Volkswagen to offer inside North American market. When Volkswagen's new Tennessee assembly plant reveals in 2013, perhaps VW could supply a model for Chrysler?
Stay hitched to Nissan. Little seen to a lot of people is the simple fact that Chrysler and Nissan forged several agreements in 2008. These include Chrysler supplying the underpinnings for the next generation Nissan Titan truck (using the Dodge Ram platform) while Nissan builds two different models for Chrysler. Nissan and Renault are essentially one company (both are managed by Carlos Ghosn), could Chrysler be pulled in because third leg on that stool?
Revisiting China. Chrysler stood a business agreement with China's Chery Automotive Group, but that deal was canceled last year as Chrysler's financial plight worsened. Whether it is with Chery or another manufacturer, Chrysler could certainly take a peek at tapping just one more company to offer cars because of its Dodge, Chrysler and Jeep dealers.
Ultimately, Chrysler's survival will depend much on internal restructuring in front of external relationships. Still, within this whole world of global consolidation, working with car companies around the world is something which could benefit Chrysler too as its potential partners.
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