news for Chrysler first few days of 2009 was particularly bleak: despite getting three billion U.S. dollars in federal funding, the automaker will have a tough time surviving beyond the first quarter without a second injection of cash. Although the new Congress was seated and a new president took office, there is no guarantee that politicians will want to help Chrysler out of the initial loan amount. The ingredients are hot as you can see private companies and public companies bailed while struggling to make their mortgage payments, hold a job, and pay the bills.
Chrysler recently announced a strategic alliance with Fiat, a job that could bring seven Fiat and Alfa Romeo models in the U.S. market in exchange for giving Fiat 35% ownership of Chrysler LLC. But it is that foreign ownership of Chrysler, which has some unhinged, wondering aloud whether the right of Congress to support foreign-owned entities as another 19.9% of Chrysler is owned by German auto company Daimler AG.
If Congress does not approve the arrangement Fiat job, and Chrysler will not be able to count on new cars to supplement its fleet from the Italian car company. Without these new cars, Chrysler has no funds for the development of new models on their own. Without new models, Chrysler will continue to lose sales and probably find yourself going out of business.
But Chrysler can still have a few options available to him even if the Fiat deal unfolds. Among them are:
is expanding its relationship with Volkswagen. At this time, helped Chrysler minivan for Volkswagen for sale in North America market. When Volkswagen opens new Tennessee plant in 2011, maybe VW could supply a model for Chrysler?
Stay attached to the Nissan. There is little known to most people is that Chrysler and Nissan forged several agreements in 2008. This includes Chrysler supplying the substrate for next-generation Nissan Titan truck (using the Dodge Ram platform), while Nissan is building two different models for Chrysler. Nissan and Renault are essentially one company (both managed by Carlos Ghosn), could be drawn Chrysler as the third leg on the chair?
Review of China. Chrysler is a business agreement with China's Chery Automotive Group, but the deal was canceled last year as Chrysler financial condition worsened. Whether you are working with Chery, or any other manufacturer, Chrysler could certainly see by clicking another company to provide cars for the Dodge, Chrysler and Jeep dealers.
Finally, Chrysler survival will depend a lot on the internal restructuring of the foreign relations front. However, in this world of global consolidation, in cooperation with other car companies around the world is something that could benefit Chrysler as well as their potential partners.
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