Tuesday, January 27, 2009

Fiat plans for Chrysler

Chrysler

While the new Chrysler,FIAT relationship is only a few days old, it seems  as though the bloom is wearing of the deal.

Questions are already being asked as to how Fiat will utilize Chrysler to enter the north American market and how will a pairing up with Fiat Benefit the company that Walter Chrysler built.

Dire times always make it easier for these kind of deals to get at least initial approval and with Chrysler bleeding money it’s no wonder that their quite happy to have a suitor who's  interested in merging with the company.

As with everything in business mergers, synergy between the two is critical to making such a large transaction work. but there are bigger questions that should be asked here, no doubt that combining the two companies would give each the kind of scale needed to compete in such a hotly contested market.

But another question that hasn’t been asked is should there be any effort made to help Chrysler, obviously with the economy still trending downwards the last thing needed is more unemployed workers and the ramifications that would come from this occurring but…

Lets face it.. the market in north America is saturated with too many players and the weak ones are being weeded out, would there be such an effort in better times or would the government let fate take its course.

Probably the latter.

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