Fiat Chrysler’s Italian Problem Drives Need for Partner

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Fiat Chrysler’s Italian Problem Drives Need for Partner
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Behind Fiat Chrysler's proposed alliance with Renault lies the need to fix chronic weakness at the Italian-American company’s Fiat brand

Behind Fiat Chrysler Automobiles NV’s proposed alliance with Renault SA lies the need to fix chronic weakness at the Italian-American company’s Fiat brand.

Unlike Fiat Chrysler’s biggest seller, Jeep, the Fiat brand consists predominantly of small cars that compete in a crowded European mass market with low profit margins. The struggles of Fiat, the group’s No. 2 brand, are an enduring problem for the parent company because the brand accounts for almost a third of vehicle volume and sucks up investment that could be spent...Carlos Ghosn resigned as chairman and CEO of French auto maker Renault.

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