Fiat ended its 27-year absence in the automobile market in North America when the first Cinquecento (500), very small, iconic Italian car, which was a strong sales in Europe, was taken March 10, 2011. Italian automaker re-entered the market through an alliance with Chrysler, the American automaker Fiat acquired in April 2009. For Laura Soave, head of Chrysler Group Fiat brand in North America, the first delivery was a watershed in a journey that began 12 months ago, when she first took on the responsibility for the re-launch of the Fiat brand in North America. As the first product of Fiat-Chrysler alliance, the result of running Cinquecento would indicate how the integration of operations and, in particular, the sharing of technology, platforms, components, plants and distribution networks will guide the long-term health of both Fiat and Chrysler. This case looks at the various strategic and operational challenges facing Soave throughout the process.
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by Gary P. Pisano, Philip Andrews, Alessandro Di Fiore Source: Harvard Business School 24 pages. Publication Date: May 11, 2011. Prod. #: 611037-PDF-ENG
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