3.1. Chrysler – Fiat . Merger and Acquisition (M&A) One of the successful mergers and acquisitions in recent years is the fact that Fiat – the Italian car manufacturer has acquired a stake in the third largest US car manufacturer, Chrysler, after the company filed an application. apply for bankruptcy protection. Chrysler’s bankruptcy filing and its deal with Fiat are seen by observers as an important development for the world’s auto industry, including its competitors and suppliers. by Chrysler. Accordingly, Chrysler has suddenly announced that it has reached a merger agreement with Fiat, in which the Italian automaker will initially hold a 20% stake in Chrysler. The deal also allows Fiat to hold a stake of up to 35% in Chrysler if the Italian automaker invests in operations in the US market and transfers technology for small-car production to Chrysler. In addition, once Chrysler has finished paying off the loans that have been granted to the US Treasury Department, Fiat could eventually own a 51% stake in Chrysler. The most important reason for Italy’s largest car company to want to shake hands with Chrysler is none other than to have a bridge to penetrate the US market. With inherent internal resources, through Chrysler, Fiat has the power to create surprises in the US market. The models that Fiat very much want to bring into the US right now are the Fiat 500 small car and some new Alfa Romeo models. These models, if available in the US, will certainly be very expensive because of their low prices, fuel economy and attractive designs. However, Fiat found that its models would sell better if assembled and manufactured in the US. For its part, Chrysler also reaps many benefits if it joins hands with the Italian giant. In addition to the financial benefits to help Chrysler overcome the crisis, this American car company also received technological help in conquering difficult customers in Europe.
3.2. Volkswagen – Porsche Merger and Acquisition (M&A) The European auto industry in recent years has been equally bustling in mergers and acquisitions. In addition to the fact that the German auto industry is considering the acquisition of GM’s Opel division in Europe, with the success trend in favor of Canada’s Magna, the European auto industry is also receiving good news about the merger agreement. between two German car giants, Volkswagen and Porsche. Accordingly, by 2011, the two companies will share the same roof and become one of the largest car brands in Europe. Europe’s largest car manufacturer Volkswagen and Porsche announced that they have reached an agreement to merge operations to become a unified car group under the leadership of Vo
