Read this article about how well Fiat is getting along with the Chrysler culture, and vice versa. 

In my experience this one article seems to summarize all the merger stories I have ever read - 

Recall that Chrysler already went through the same thing with Mercedes which is how they ended up with Fiat, that culture clashed also

What was the good of HP and Compaq?

Fed Ex has already ditched the Kinko name that they paid billions to get

GM ended up paying Ross Perot $750M to leave the company after they paid money to buy EDS

The only positive I see in making Ram a separate vehicle line is that might make it easier to sell to a truck company which is my long term prediction about what will happen, Fiat will not know what to do with a big pickup, perhaps International will want to be back in the pickup business

All companies will not survive this business downturn which will last for many many years, I expect Fiat will end up with the chrysler factories and that is about it, and I doubt that they will manage to build fiats in any time frame, given an overall downturn that will make Fiat a match for honda toyota kia

I mean this never worked for Renault….

Posted in

2 responses to “Mergers Rarely Work”

  1. Adam Dupnik Avatar
    Adam Dupnik

    There is a good book that talks about this. ” How the Mighty Fall ” by Jim Collins

    Like

  2. uaRTERL Avatar
    uaRTERL

    Adam
    Thanks! The companies that do well are single minded and tend to their knitting as the saying goes, look at amazon and google right now,
    the fact that many of the second tier accounting firms like alexander grant are surging ahead is another good example, they avoided big snafus and stayed profitable and are attracting new clients

    Like

Leave a comment