Chrysler reaps benefits from merger with Fiat

When Chrysler and and Fiat announced a merger between the two automakers in January 2009, some feared Fiat's Italian roots would seep into the U.S. automakers' vehicles. Now, almost two and a half years later, consumers are seeing quite the opposite, reports Automotive News.

Chrysler-Fiat's 22 executives typically hold their meetings at Chrysler's base in Aurburn Hills, Detroit; meetings are rarely held at Fiat's base in Turin in northern Italy. In addition, speaking Italian is forbidden at these meetings. The official language of the company's Group Executive Council is English.

Even though Fiat owns 58.5 percent of the company's stock, Chrysler seems to be taking over. Turin, which was Fiat's base for more than 130 years, might soon be reduced to a regional headquarters that covers Europe, Asia and the Middle East.

It figures.

In the first quarter of this year, the company generated some 670 million euros from its North American sales, while its European sales showed a loss of 207 million euros, according to Automotive News.

However, company executives maintain that Chrysler and Fiat operate as a singular and balanced entity.

"We are making all the decisions together as one management team," Chrysler Group CEO Sergio Marchionne said at a media briefing earlier this year. "There is no question about who runs what. I run one company."

Despite which brands sell better and where the sales are coming from, the merger seems to have worked.

In April, Chrysler Group announced it increased its net profit by $740 million, a 55 percent jump from last year. In addition, Chrysler Group posted a 40 percent increase in U.S. retail sales, and for the first time in history, Chrysler became the market leader in Canada with a share of 15 percent.