This website uses cookies to ensure you have the best experience. Learn more

How Chrysler Handled The 2007 Recession In Regard To Their International Strategies

1139 words - 5 pages

Due to the devastating economic crisis in 2008, American automobile industry suffered a disastrous period. In particular, the sales volume of Chrysler went down 30.3% compared to 2007. Without doubt, Chrysler had the most terrible performance among the three giant native auto companies in North American while its market share declined to about 10%. Meanwhile, the cost of Chrysler was related high, which led Chrysler has less competitiveness. In addition, Chrysler also had heavy liabilities, and it made Chrysler’s financial situation worse.
In order to save itself, Chrysler was attempting to seek restructure opportunities. In August and October 2008, Chrysler negotiated with Nissan and General Motors respectively. However, as the poor performance of General Motors in the crisis, the negotiation didn’t proceed then. At the end of 2008, Fiat and Chrysler began to discuss the merger.
On 19th December 2009, Chrysler closed all the manufacture operation to reduce its cost as well as to make its stock meet the market demand. At the same time, Chrysler laid off 32 thousand employees to reduce its expenditure.
Also, Chrysler had asked US government for help. By the end of 2008, US government provided $4 billion to rescue this auto giant. Then the US government pressurized the creditors (the debt valued $6.9 billion) made significant concessions. And four main loan institution with 70% liability agreed settle these debts with $2 billion, which paved the way for a radical restructuring of Chrysler. What’s more, US government required Chrysler apply bankruptcy protection. In this case, bankruptcy protection is not simply property liquidation, but rather to change the legal form to protect the company and to make the company operate more efficiently. While Canada and US auto unions were reached a preliminary agreement with Chrysler. And Daimler would also sell the remaining stock to completely quit from Chrysler. When the unions, creditors and other parties cleared obstacles, Chrysler and Fiat was expected to reach cooperation soon.
On 30th April 2009, Chrysler filed for bankruptcy protection. Meanwhile, Chrysler announced that it would set up alliance with Italian carmaker Fiat. And this alliance became No.6 in worldwide automobile industry (Chrysler ranked 11 while Fiat ranked 13). Thereafter, Fiat increased the holding stock to 58.5%. On 1st January, Fiat took $3.65 billion to buy 41.5% shares from US Voluntary Employee Beneficiary Association (VEBA) to complete 100% acquisition of Chrysler. According to Marchionne, who is the CEO of both Fiat and Chrysler, Fiat-Chrysler will become a much competitive global automobile production group.
In this acquisition, we hold the view that both Fiat and Chrysler could get benefit from each other. For instance, Fiat brought strategic asset for the alliance include: 1), shared the city and compact models with Chrysler in the product platform, which also expand Chrysler’s current product line; 2), shared the...

Find Another Essay On How Chrysler handled the 2007 recession in regard to their international strategies

How the Advertiser Presents the Product to the Consumer and Comparing the Adverts in Mercedes-Benz and Chrysler Voyagers Ads

1231 words - 5 pages How the Advertiser Presents the Product to the Consumer and Comparing the Adverts in Mercedes-Benz and Chrysler Voyagers Ads I have chosen to compare two adverts on cars. They are for a Mercedes-Benz and a Chrysler Voyager. I will be looking at all aspects of my chosen adverts and comparing them to each other. The advert for the Mercedes-Benz is very personal, and is constantly putting the reader in the driver’s seat

How to Avoid a Recession Essay

796 words - 4 pages back out there would some what narrow down how many people we have on unemployment and the ones that are now applying for it (Dews). Along the lines of everything else that we can do to stop a recession, we could also make online education for those who are trying to better themselves for the working world. But also make better training programs for the fact that maybe we lack in training areas. Now these will create working skills that better

Assessing the Course of Action in Regard to Guam's Plebiscite

3353 words - 13 pages say in the future of Guam, regardless of the population distribution. According to the Treaty of Paris under Article IX, the people who have the right to self-determination are the "native inhabitants." Furthermore, "in international law, `the people of the territory' is understood to be those who would have made up a nation in the absence of colonialism." (Commission 2) This view is not shared with everyone. Thomas Sheldon wrote an essay

The Use of Magical Realism in Regard to Homosexuality

1249 words - 5 pages the onset of the novel, the two characters are presented as polar opposites who cannot seem to get along; which later on, their relationship evolves to one that requires them to have a real desire to become close to one another despite the prejudices instilled in them by the Argentine society. Through the movies described by Molina, we, the reader, are shown the progression of the two characters as they realize that they both are no different from

Mini Essay: BUSINESS IN THE ECONOMY - What decisions does a business firm make in regard to what, how much and how to produce?

1070 words - 4 pages In an economy, a business's fundamental purpose is to provide products or services to consumers and apply business strategies to maximise their profits. Entrepreneurs must therefore make important decisions which will affect the performance of their business. The basic production decisions concerning a business firm are the choice of the product of which to produce, the quantity of production and the method of production. With these decisions

Discuss the different neoplasms which may arise in the lung. Discuss their staging and grading with regard to prognosis and treatment. Are there any promising new treatment modalities?

2142 words - 9 pages cancers to cure. However understanding the different neoplasms arising in the lung, as well as their staging and grading with regard to prognosis, has lead to some promising new treatment modalities.Neoplasms of the lung"Neoplasia literally means 'new growth'. It is a process which causes uncontrolled abnormal growth of tissue. Such tissue serves no useful function and does not coordinate with other body tissues. The mass of tissue formed by

With regard to the role of bail in the criminal investigation process, evaluate how the 2013 NSW bail laws balance the rights of offenders, victims and society.

2070 words - 8 pages Legal StudiesThe role of bail laws Assessment Task 1 With regard to the role of bail in the criminal investigation process, evaluate how the 2013 NSW bail laws balance the rights of offenders, victims and society.In the criminal investigation process laws regarding the role of bail must balance the rights of offenders, victims and society. However, in the past the protection of society and the individual have often come into conflict with each

The American Dream as it used to be and what it as evovled into: How has the American Dream effected the way hurricane Katrina was handled?

2502 words - 10 pages poverty and materialistic mentality. I've tried to analyze the situation the hurricane "Katrina" left the poor in, and how the American Dream has effected this situation. I hope you enjoy reading my project as much as I've enjoyed creating it.What is the American dream?The American dream is the ideology held by most Americans. Believing in the American Dream, is believing that prosperity can be achieved merely through hard work, courage and

An Open Letter to the Reverend Fred Nile in regard to Marilyn Manson

1132 words - 5 pages have been significantly involved in creating.Second, there is the question of the generational relevance of your comments. The generation that spawned the Baby Boomers, raised in a relatively Christian era in regard to shared morality, in all probability agree with you. And many Baby Boomers (raised to doubt and reject Christian truth claims) because of a hangover from their parent's morality sense that what you are saying about the dangers of

What are the main difficulties faced by multinational firms in developing their international managers? Suggest how management should respond

2056 words - 8 pages developing countries.Thirdly, building a corporate language also challenge MNCs to develop their international managers. As companies internationalize and expand their operations into more countries, language questions inevitably come to the fore (Marschan-Piekkari & Welch, 1999). With regard to operating in many languages and co-ordinating a multinational workforce, companies may adopt a common language for internal communication, which implies

Pharmsim Simulation Paper. This paper shows, how to implement the marketing strategies in Pharmsim simulation

2401 words - 10 pages All-Star may face are having the competitors take over the market and other factors that lead to having a successful company. B&B was the leading competitor, taking over Brand Awareness, most frequent purchases, and having the highest stock price. All-Round must be aware of its competitors and how their strategies are planned within the cold and allergy market. Making adjustment to what our competitors are doing is the only way to stand up

Similar Essays

Compare And Contrast Toyota And Volkswagen In Terms Of Their International Business Strategies

1281 words - 5 pages , improve quality and save money (China Information News, 2001).In brief, both Toyota and Volkswagen face the problems in human resource management when they expand globally, but they choose different remedies and strategies to ease the adverse effects and operate relatively well in their management fields.ReferencesAnand (2008) Volkswagen Orients Human Resources Work Worldwide to Its Growth Strategy [Online]. Available at: <http://machinist.in

The Great Recession Of 2007 Essay

3273 words - 13 pages The Great Recession of 2007Michael SchildKeystone CollegeThe economic collapse of 2007, also known as the great recession, officially started in December of 2007 and officially ended in July 2009. The start of the recession was long before Americans and bankers on wall street realized there was going to be a recession. Most bankers feel the official end of the recession in July of 2009 is a joke (Montanna 2010).There is a lot of blame to go

Causes For The 2007 Recession Essay

1202 words - 5 pages The United States faced one of its worst recessions in history during the latter half of the first decade of the twenty first century. Termed as the Great Recession, this period rivaled the Great Depression of the 1930s and had such an impact on the entire world that international economies were severely affected, and several national governments had to work together to get their countries out of the crisis. The crisis initially began as a

The Great Recession Of 2007: Job Discrimination In The United States

1440 words - 6 pages In December of 2007, the United States entered a recession that was ignited by the global financial crisis. A recession is a period of decline in economic activity. The Great Recession, as Americans referred to the recession of 2007, was the longest recession since the Great Depression (Homan & Matthews , 2008). With inflation occurring and the housing market in shambles, Americans struggled to live during this horrific period in U.S. history