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US car giant saved by Fiat

It’s curious, how Americans like to berate the wonderful Europeans, how they boast about the dynamism of their economy, with low regulation and suchlike. Hasn’t this whole episode served to demonstrate how much hogwash that really is. The US isn’t dynamic, it’s conservative and bloated, lumbering about in the same manner as much of its obese population, unable to compete in an increasingly globalised economy. That is the real reason your economy is suffering, that is the reason why you complain how firms are outsourcing and relocating abroad, why so many are failing. People from the US repeatedly talked about how environmental legislation stifles business and investment, but no, the evidence and logic suggests it leads to increased efficiency. Firms learn better ways to do things in a less wasteful manner. The US has paid the ultimate price for its obstinateness, its inflexibility. How dare Chrysler get out of this so easily, thieving European fuel efficient technology!

The US will surely pay for its arrogance and contempt for other nations in coming years. An arrogance which seems to be bred within its citizens

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Answer #1

When I was in high school debate the concept of “fiat power” came up. I wondered what the Italian automaker had to do with debate resolutions.

Answer #2

Ah, the car company fiat. I thought the title was referring to government fiat.

Answer #3

Note that Fiat has not been doing that well itself. It almost failed a few years ago.

Currently Fiat is somewhat stronger than Chrysler but both automakers are troubled and need each other. Fiat needs access to Chrysler’s US dealer network to reach this market. The alliance will allow both companies to have greater economy of scale to compete better with larger automakers.

There is no thievery going on; both companies will benefit from having access to each other’s designs, technology and dealer networks.

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