1. What are your views of the Chrysler-Fiat auto alliance and its status in 2012?
Despite some drawbacks, the alliance has worked well, and has been beneficial for Chrysler and Fiat. The growth and survival of both companies had faced problems in the areas of technology and quality standards. Chrysler needed the alliance for survival due to its bankruptcy position and conditions of bailout. It also needed a partner to bring innovation, increased R&D opportunities, low cost technology and access to European markets. Fiat wanted to reenter the North American market and needed access and distribution through an established manufacturer that knew the market, and had the technology available; which would be possible through a strategic alliance with Chrysler. There were concerns that all synergies would not be successful due to cultural differences and integration issues; however, the opportunities that existed to reduce costs, expand into new markets, and provide low priced fuel -efficient automobiles outweighed those concerns. As of 2012, Chrysler and Fiat seemed to be in a good position regarding capitalizing on the alliance. It has brought major savings in the areas of joint product development, supplier networks, and dealer networks. Both Chrysler and Fiat have raised their quality ratings and established dealer networks in the U.S. and Europe. The alliance sold 4.2 million vehicles worldwide in 2011 and planned to sell six million automobiles worldwide by 2014.

2. Analyze and evaluate Chrysler and Fiat’s strengths and weaknesses before and after the alliance.
Fiat’s strengths before the alliance were that it had survived corporate disruptions, labor crises, and numerous technology shifts. It reinvented itself by repairing its brand portfolio and quality areas. It acquired Alfa Romeo from the Italian government in 1986, establishing