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Size alone does not help the car companies

The Dodge Ram 1500 is one of the cars with which the American-Italian group is Fiat Chrysler the money is hard earned: 5.8 meters long and 2,500 pounds. Its 5.7-Liter engine makes 401 horsepower and has a corresponding thirst. With a 15 litres per 100 kilometres should be expected. In the United States, the car sells well, mainly thanks to a property: Size.

On the Size of sets Fiat Chrysler but not only in its cars for the American market, but also in General. Still, the company is looking for a Partner to form one of the world's largest car companies. In may, Fiat Chrysler had tried it with the French manufacturer, Renault, had to give up the Plan but a month later again.

Now, just four months later, the next attempt. Fiat Chrysler is negotiating with the French Peugeot parent company PSA, which among other brands, Opel, about a merger. But the Plan is also this time everything other than convincing. Because Size is not everything.

Fiat Chrysler lags in electro-strategy behind

At first glance, the project may appear to be, perhaps, useful. An American-Italian-French car giant, can use his developments for a number of models and brands that it can distribute the development costs on more vehicles. So, each car will be cheaper a bit, and thus more competitive.

That was the Mantra of the now defunct Fiat-Chrysler CEO Sergio Marchionne spent, as he held 2015 a legendary presentation. Title: "confessions of a capital addict". The industrial logic was not only in the eyes of Marchionnes impressive.

On the Size of sets Fiat Chrysler not only its cars, but also more generally.

But markets have changed since then. It's not just about who is the Greatest in the world of cars. Now it is also and mainly a question of who provides the most convincing and fastest solutions to slow climate change, and the aspirations of the young people met for the car not a status symbol anymore and no longer want to own it.

Fiat Chrysler is on the issues of electrification and mobility even further behind, as the German manufacturers were for a long time. The group call according to experts, up to now, no values of electric strategy. Through a collaboration with the PSA group, which is more, you could gain Know-how. But the big Problem is: This would be in the case of such a merger for the first time, no time and energy.

climate change will be the market

determine A Fusion of French, Italian, American and German interests weighed must be, is a gigantic effort. Before a shared E-car rolls off the Assembly line, must be taken a number of decisions: Which plants should stay, which ones? Where one brings together the industries of the future enabled? Where to produce the cars, the need soon, perhaps none more so? And this is also the case of mergers, is always an issue – where fall away jobs?

The planned merger with Renault failed in the approach, probably also because of such issues. That Fiat-Chrysler still carrying on with the life partner, it not only shows tenacity, but also of despair.

The PSA group should consider well, whether he wants to join in. Although CEO Carlos Tavares could reach his goal, to be on the US market, together with Fiat Chrysler, easier. However, in terms of electric cars, it would be so much more. Here is the German Volkswagen group and its chief, Herbert Diess before the currently calculated how it could go. Diess has recognized the signs of the time and fully relies on the movement of the future: the electric car.

This is the better way to apply than mergers, which can bring more problems than Benefits.

Created: 03.11.2019, 20:33 PM

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