After a short stint in Bankruptcy, Chrysler has found a viable business partner in the Italian car manufacturer Fiat. Fiat is well known for its compact, fuel efficient cars and hopes to bring their success to Chrysler. Even with the new investment, Fiat only owns 20% of Chrysler, while the majority stake (55%) belongs to a health care trust owned by the United Autoworkers Union.
The fusion of Fiat and Chrysler seems to be rather strange because neither have a strong presence in the current US economy. Fiat is a heavy weight in Europe, but little is known of their success and capabilities in the US; Chrysler on the other hand has been a key player in the US auto industry. The problem Chrysler has faced in the past few years has been a lack of true identity. While Fiat is a viable company, it will take a drastic change of focus and concentration in Chrysler's business plan to be succesfull in this increasingly competitive market.
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