Though the the impact of nationality on the auto industry may be fading, the issue couldn’t be more central for Sergio Marchionne and his Fiat-Chrysler Empire. Having accepted aid from both the Italian and American governments, the future merging of Fiat and Chrysler raises a delicate question: will a merged Fiat/Chrysler be an Italian or American firm? When Marchionne suggested that the Fiat-Chrysler alliance could be headquartered in Detroit, Italy erupted in recriminations. The Italian government called Marchionne onto the carpet to explain himself, even as critics lashed out saying
The government is moving too late, but better late than never. Marchionne is more oriented strategically toward the U.S. than Europe
And sure enough: Fiat restated its commitment to investing some $27b into Italian production, but as AFP reports
the question of whether Fiat would remain based in its birthplace of Turin remained unclear, with local officials saying it had been put off for three years and would depend on the company’s performance.
But, while American and Italian stakeholders bicker over the “national character” of a merged Fiat-Chrysler, the proposal establishing four headquarters in Turin, Detroit, Brazil and “somewhere in Asia” points to the real issue: Fiat-Chrysler must orient itself around its markets, not any national corporate character. The longer the divide between Italy and the US is played up, the more Fiat-Chrysler runs the risk of developing a dysfunctional corporate culture like the DaimlerChrysler “marriage of equals.” It’s just too bad that, by tying itself up with the governments of the USA and Italy, Fiat allows the “national character” question to take such prominence.
Bring the girls, leave the truck.
As long as the vehicles are as reliable as industry averages and the company finds ways to differentiate the character of thoe vehicles based on their “supposed” country of origin, who cares?
True. But if we have to have a label, why not follow the African-American example and just call it Italian-American? It’s a hybrid. :>0
John
Lee Iaccoca would be proud.
Regional economic interests who depend upon the enterprise in question, I would expect.
Bring the girls, leave the truck.
Now, now, Dan. You’re engaged. :-)
I’m no “Jack Baruth” but if you don’t look, you might want to check yourself for a pulse. ;)
Although there’s a guy I work with (in his 50s) who gives a look like a wolf eyeing up a sheep whenever a woman under 40 walks through the room. He creeps me out a little.
Yeah, he seems a little creepy.
put the new headquarters in New Jersey
There are many things my father taught me here in this room. He taught me: keep your friends close, but your enemies closer.
That’s what I was thinking, split the difference.
Why do I see a cross-promotion with Olive Garden gift certificates in their future?
Is that the new Mozzarella SUV?
“Should Fiat-Chrysler be an Italian or American company?”
The question no longer makes sense. Fiat and its extentions are transnational parasites, and wards of transposable regimes and their political allies in labor. Fiat goes wherever the taxpayer- and debt-subsidized pickings are best. They got a windfall in Chrysler, in exchange for helping the Democrats and the UAW put a private market face on a transfer scheme which was in itself an act of theft. The need to conceal this reality is 100% of the reason Marchionne is playing the role of bitching about the raw deal he got from a hard-bargaining Obama administration. As the Administration’s getaway driver, he is being richly rewarded for this bit of politcal theatre.
“transnational parasites”
Well said, sir. I am going to have to begin using this term more often.
“Should Fiat-Chrysler be an Italian or American company?”
It’s more of a question of what Chrysler got into, or was pushed into. Fiat, remember, bought Zastava…Yugo. Under the same circumstances…the no-longer-Communist Serbian government couldn’t make Yugo profitable, so they unloaded it for basically nothing to Fiat.
Is Fiat going to Yugo-ize Chrysler? Is Chrysler going to become another Yugo, or IS it another Yugo in their minds?
Can an enterprise that just goes around to government-automotive fire sales, ever be taken seriously?
Enquiring minds want to know.
As an employee, I really could care less if the headquarters are in Turin. The former Chrysler owned by Cerberus and partially Daimler went BANKRUPT. Fiat negotiated a deal for part ownership of Chrysler and “possibly” may even sell a percentage of Ferrari to gain majority ownership, amongst other requirements for ownership.
Honestly, I don’t think any American Chrysler employee with half a brain would give a rats a$$ where the headquarters are as long as our paychecks a cashed in dollars. After what we have been through we are thankful to Fiat, US and Canadian government and everyone else involved. Especially Obama. Ohh, and George Bush too. He did give us the first lifeline.
Matters not to me. I love the Italians.
However, both Chrysler and Fiat will have to make great quality improvements to get me to even consider purchasing one of their products.
As for GM….shove it up your Obama, GM.
Sexy broads, I’ll take the American headquarters option.
I don’t care, really, as long as they keep doing what they are doing.
Put a stick in the Charger SRT-8 and I’ll pay them to do whatever they wish.
I really don’t care – Chrysler pretty much only sells cars in N. America and Fiat in ROW. Customers are not dumb and will know if that Fiat with a Dodge badge on it is, well a Fiat (and vice versa). Keep them separated and don’t badge engineer cars across the brands.
I’ll wager that all of this is a part of Sergio’s struggle to make
Fiat’s Italian manufacturing rational and his battle of the Communist controlled Italian unions.
Chrysler, a subsidiary of the Fiat holding corporation, headquarters USA.
Fiat, a subsidiary of the Fiat holding corporation, headquarters Italy
Alfa Romeo, a subsidiary of the fiat holding corporation, headquarters Italy
Fiat-Chrysler China, a subsidiary of the Fiat holding company, headquarters China
Etc…..
Confuse the heck out of everyone, but have them run as separate business units.
Have transparent accounting so that it is clear where the profits are generated.
Assign a head to each subsidiary reporting to Mr. M……
Each business unit manager will need to put the best business model together using the resources of all the groups. Mr. M….. to orchestrate.
Dealers around the world should sell all 3 brands.
Import/export the mix based on currency, manufacturing, and market conditions.
Agreed…and, of course, the same would apply to Brazil.
I think it would be hard to think of Chrysler to be anything but American. The use of some Fiat platforms and power trains are just additional options available to the American Chrysler engineers. It seems that his is where Sergio has been guiding the relationship so far.
There are strengths from each of the four that could combine to make a very competitive multinational that could allow Sergio to achieve his goal of his six million units a year. I think they can do it. Good luck!
Agreed…and, of course, the same would apply to Brazil.
I think it would be hard to think of Chrysler to be anything but American. The use of some Fiat platforms and power trains are just additional options available to the American Chrysler engineers. It seems that his is where Sergio has been guiding the relationship so far.
There are strengths from each of the four that could combine to make a very competitive multinational that could allow Sergio to achieve his goal of his six million units a year. I think they can do it. Good luck.