04 May 2009

Chrysler, Opel, Saab... and Fiat. Why?

I do not get this. Last week the world seemed to give a sigh of relief that Fiat had made a deal with Chrysler. This week there seems to be a new deal with GM's European brands SAAB and Opel.

All this may work, of course, and the result may be an economically healthy car giant. But is there any particular reason to believe so? Chrysler already failed miserably in a merger with German Daimler. SAAB and Opel still presumably have plenty of links with GM, which makes some of their parts. And Fiat had huge economic problems themselves until not so long ago.

Fiat and their subsidiaries Ferrari, Lancia and Alfa Romeo make great cars to drive, but they are not known for their high quality, or commercial success.

This merger concerns a number of very different brands and technologies. A lot of skilful organisation needs to be applied to make it work. Does any of the involved companies own those skills?

No comments: