On Wednesday, executives from Fiat and Chrysler will both outline what they have planned for Chrysler Group LLC over the next 5-years. The event will be held in Auburn Hills and about 300 people are expected to attend including analysts, government and union officials, dealer representatives and media to hear for what CEO Sergio Marchionne has to say.
Not to rain on their parade or anything but a Deutsche Bank analysis said that Chrysler Group LLC and Fiat SpA vehicles have little in common, which will making harmonizing their products, parts and purchasing programs difficult.
And almost all automotive mergers and acquisition deals “took easily a decade to fully bear fruits,” the report, which was released Monday, said. “We doubt Chrysler/Fiat can be much quicker.”
Analysts say that the cost benefits of combined purchasing for the Fiat and Chrysler will not be easily realized given their different geographic regions. However, on a more positive note, the geographic differences between the two companies offer a lot of market potential.
Bringing Alfa Romeo to the United States and heavily marketing Jeep in other markets is definitely in the cards.
– By: Stephen Calogera
Source: Detroit News