Fiat gains full control of Chrysler
Right at the beginning of this year (2014), Fiat gained full control of the Chrysler group (which obviously affects the Chrysler brand) in a 4.35 billion dollar deal. It bought the missing 41.5% stake from the United Auto Workers. The ownership operation resulted in a imediat stock jump: 16%
As a consequence of the deal it is expected that Fiat will give a bigger emphasis to technology and experience sharing inside the group, which is great for Chrysler (brand)
The group is now in better condition to challenge the other big carmakers.
Detailed analysis by Bloomber here.
The new Chrysler 200 – recently unveiled
The brand has recently revealed the new Chrysler 200, in the 2014 Detroit Auto Show. It has been completely redesigned. It is supposed to to set a new course for the brand (whatever that actually means), and be more competitive in the medium-car arena, according to CEO Al Gardner.
Its new sleek body conceals some of the state of the art technologies in the auto industry, including a nine-speed automatic transmission, adaptive cruise control, autonomous braking to avoid colisions, lane-departure warning and assist and blind sport alert (Detroit Free Press 2014). As in many Chrysler cars, its available engines are somewhat overpowered for an everyday use (184 or 295 hp).
One of its best features may be the price: “U.S. Manufacturer’s Suggested Retail Price of just $21,700”.
Fiat Rethinks Chrysler Models
As Fiat SpA took full control of Chrysler, it imediately revealed its ideas for Chrysler lineup (and other brands too). Sergio Marchionne, Chairman and CEO, does not intend to add any more Chrysler models in the short term. Fiat wants to suspend Chrysler’s ongoing project for a small car – the “100” – because the Dodge Dart already covers the compact car niche.
Furthermore, Fiat wants to stop selling the 300C and other models in Europe while they wait to be replaced.
Finally, there is a ongoin discussion about stopping the production of one of the group’s two Minivan models – the Town & Country and the Dodge Caravan. This has created speculation. In the end, the Town & Country should survive given its history of success.
Brent Snavely. (2014). Detroit Auto Show: New Chrysler 200 must compete better with the big boys. Available: http://www.freep.com/article/20140113/BUSINESS03/301130012/Chrysler-200-NAIAS-Detroit-auto-show. Last accessed 10 Jan 2014.
Christina Rogers And Gilles Castonguay. (2014). Italy’s Fiat Rethinks Some Chrysler Models. Available: http://online.wsj.com/news/articles/SB10001424052702304549504579319513509330206?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304549504579319513509330206.html. Last accessed 15 Jan 2014.
Jen Herman. (2014). Just Revealed: The All-New 2015 Chrysler 200. Available: http://blog.chryslergroupllc.com/blog.do;jsessionid=FC0C79EA5C718770D4925537F31A4C12?p=entry&id=2216. Last accessed 15 Jan 2014.
Marc Nordeloos. (2014). Chrysler 200 revealed in Detroit. Available: http://www.autocar.co.uk/car-news/detroit-motor-show/chrysler-200-revealed-detroit. Last accessed 10 Jan 2014.
Tommaso Ebhardt and Mark Clothier. (2014). Fiat Gains Full Control of Chrysler in $4.35 Billion Deal . Available: http://www.bloomberg.com/news/2014-01-01/fiat-agrees-to-buy-rest-of-chrysler-in-4-35-billion-deal.html. Last accessed 5 Jan 2014.