Fiat-Chrysler deal: looking for a good returns from M & A

Abstract

Purpose

The aim of this paper is to investigate the cross-border acquisition’s process through the Fiat-Chrysler case. Many automotive companies have considered cross-border mergers and acquisition (M & A) as a necessary step to face increasing competition and globalization, but only few of them were successful. In particular, some best practices in terms of lessons-learned are highlighted.

Design/methodology/approach

The paper is based on the analysis of a cross-border acquisition: the qualitative approach allows authors to better understand all the dynamics, complexities and problems that characterize companies facing this process (Yin, 1984). Authors used public information, Internet sources and Fiat’s documents to gather all the necessary information.

Findings

In a cross-border acquisition, compatibility and complementarity of products and markets are fundamentals, whereas unmanaged cultural differences, as well as misunderstanding of the real motivations, are a slow but deadly poison: integration and a clear common focus on the final target are key factor for success.

Research limitations/implications

The investigation is limited to the strategy used by Fiat-Chrysler. If the authors’ suggestions can be confirmed or improved by using other case studies, guidelines could be very useful to companies dealing with M & A.

Practical implications

The paper offers recommendations on how big companies can manage a cross-border acquisition, illustrates the key steps to be successful and tries to define the necessary elements for a successful M & A.

Originality/value

The paper shows how two real multinational companies operating in the automotive sector have decided to become one entity; moreover, it highlights the fundamental steps of the process, giving to the management a good example of what must happen in reality.

Citation

Bertoldi, B., Giachino, C., Bernard, S. and Prudenza, V. (2015), "Fiat-Chrysler deal: looking for a good returns from M & A", Journal of Business Strategy, Vol. 36 No. 4, pp. 23-33. https://doi.org/10.1108/JBS-02-2014-0015