There is no question that Fiat is one of the largest manufactures in Italy but in the past they have struggled to adapt and respond to increasing competition. The Agnelli family which was controlling Fiat at the time met with a group of investors in Turin and decided to merge with Chrysler. Now Fiat Chrysler Automobiles (FCA) will be added to the New York Stock Exchange.
It is definitely upsetting that Fiat has to leave Italy which has been the home of the manufacturer for the past 115 years. But Sergio Marchionne, who will take over as the CEO of FCA believes that in order for Fiat to become more involved in the competition it has to move out of the country.
Merging with a U.S. car maker such as Chrysler would give the manufacturer the required sophistication to become more involved in the market. Although, this merge will be less than satisfactory for most Italians, it’s about time the change was made, since Fiat was on the verge of bankruptcy nearly a decade ago. That was enough to prove that the Italian perspective and markets were not sufficient to provide Fiat the push it needed.
The Italian economy hasn’t been in good shape for a while now. Unemployment rates are at record highs and there is no sign of a adequate reform coming soon. After its merge, Fiat’s goal is to gradually boost its delivery rate to 7 million cars by 2018. Despite there being a substantial amount of improvement with that number, most other competitors like General Motors and Toyota surpass it by much more. For now, ending their reliance on Italy, looks like the best move for Fiat.