I definitely like this idea more than Chrysler merging with GM, which was the talk a few months ago.
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Possibly. The question is can Fiat and Chrysler get back much of the talent that MB's terrible leadership chased away. I'm not sure what all Chrysler has anymore. The partnership has some logical justification. It gives each better access into their respective markets. Chrysler does have some large car expertise (assuming the experts haven't left already). Chrysler also has the truck and SUV experience which is still valuable in the NA market. Finally, the Jeep brand.
Fiat has the small car expertise and volume which could allow the partners to produce a decent small car for the US market that could also sell overseas. Historically it's hard for the domestics to compete in small cars because the UAW has made it hard to import the cars from markets where small cars have historically not been for those who are too cheap to spend much. At the same time the high cost of UAW labor made it hard to profit while selling small cars due to the relatively small profit margins.
The assembly quality in the US is dependent on the company. Honda and Toyota have done a good job with US assembly. Ford has also shown that it can be done well. There is nothing inherently magic about quality assembly, it just takes hard work and smart vehicle and assembly design work and a system that reacts to remove problems when they are discovered.
Overall I'm not sure this will work but I figure Chrysler was so badly depleted by MB that really they have little left. Unlike Ford they don't have a recent record of good quality and unlike GM and Ford they don't have much in the way of exciting or promising product. Of the cars the 300 platform is the only one that seems worth much and it's a lot of MB recycling (it however is not simply an old E class chassis). They better hope they have something good in the pipes.
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500 R/T maybe?
small cars generates small profits even here, and even here the equivalent of
UAW are expensive too, and considering about all the small cars from Fiat are pretty recent (apart from the Ypsilon, which is going to be replaced in a year or so), I suppose they would just rebadge/rebody one of those, and it could work too (perhaps using cars like the Bravo/Delta and so on, not the smaller ones.
see aboveThey better hope they have something good in the pipes.
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IF they ended up making any cars in the US it would probably be for cars that are primarily sold to Americans (like BMW with the X5 which are assembled in South Carolina for instance).
Since there was no cash involved I don't see how Fiat loses and for us I would like to start seeing Alfas and Lancias in the US again.
wait, so fiat only wants to use chrysler's dealer lots or something? or do they want chrysler to build their cars? that would be disaster.
Andreas Preuninger, Manager of Porsche High Performance Cars: "Grandmas can use paddles. They aren't challenging."
Big cities suck
"Not putting miles on your Ferrari is like not having sex with your girlfriend so she'll be more desirable to her next boyfriend." -Napolis
chrysler can build stuff that stays together long enough to leave the dealership? news to me
Andreas Preuninger, Manager of Porsche High Performance Cars: "Grandmas can use paddles. They aren't challenging."
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