Hi, need to submit a 1500 words essay on the topic Chrysler in Trouble.Download file to see previous pages... However, the German company was found to be more dominant (Ghuman 628). The Americans star

Hi, need to submit a 1500 words essay on the topic Chrysler in Trouble.

However, the German company was found to be more dominant (Ghuman 628). The Americans started feeling that they were being deceived. The culture of the two countries was different and this was one of the main reasons for their collision (Ahlstorm, and Bruton 57). The executives of Chrysler felt that the Germans were proceeding in their own way and there was no scene of cooperation with the Americans from their side. According to the employees of Chrysler if they were aware of the fact that the Germans would be dominating in such a manner then they would never had made any deal with the Germans. The employees of Chrysler were being demoralized by the behaviour of the Germans. The nine years of mergence of the two big companies failed mainly due to the holding of 80.1 per cent of the stake of Chrysler by Cerberus Capital Management. However, it was promised to Chrysler that its first rank in the US market and the global industry would be restored. It was also decided that Daimler will keep 19.9 per cent of the stake. Question 2 Chrysler LLC was trying hard to restructure its financial conditions and repay the debts of its creditors. The performance of the company and its sales revenue showed a decreasing trend and thus the company failed to stabilize its financial conditions. ...

Thus the company had no other option other than filing for bankruptcy in order to find a solution to its huge debt (McEachern 288). The decision of filing for bankruptcy was not a reason for its failure but it gave another chance to the company to revive. If Chrysler would have tried to stand alone instead of combining with Fiat, then its inability to repay the debt to its creditors would have forced the company to become insolvent. It was impossible for the company to continue its business with the decreasing sales revenue of the company. Moreover the loan requested by Chrysler would not have been accepted by the Federal Government if the company would have refused to combine with Fiat. Thus this decision was taken so that Chrysler could continue its operations remaining in the business. Question 3 Chrysler did not follow the automobile makers of Japan. It adapted new strategies and advance technologies of its own (Shimokawa 84). It focussed on the new segments in the market. It mainly focussed on the light trucks and SUVs. The market for light trucks and SUVs is bigger as compared to that of the passenger cars. The trucks had a market expansion from 20 percent to 50 percent gradually. The factory of Chrysler was built in such a way so that it could allow mass production. This favoured the production of trucks and SUVs. Moreover, the production of trucks helped in the reduction of costs of manufacture. A large number of trucks were manufactured out of the same frame and as a result it involved low cost for each vehicle and decreased the total cost of manufacture. Chrysler thought that this strategy will help them to earn a good amount of revenue and also increase the cash flow.