Chrysler Negotiation Analysis

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Introduction This paper will analyse the negotiation that preceded the acquisition of Chrysler by the Italian car manufacturer Fiat in 2009. The aim of this analysis is to apply some theoretical elements to the negotiation process in order to facilitate the understanding of the reasons that brought to a specific agreement. In particular, the objective is to underline some behaviours and factors that affected the evolvement of the situation and fully perceive their impact on the negotiation. The intent is to link all the occurred actions to the resulted decision and to understand these connections. Since the beginning of the twentieth century, the Italian-based company Fiat focused remarkably on an international strategy. In 1908 Giovanni Agnelli…show more content…
The interest of the parties involved in the Fiat-Chrysler negotiation are very complex; in fact, the negotiation actors are organizations that represent the interest of thousands of people, if not more. In this context is very hard to analyse all the interests and preferences of this negotiation and moreover it is useless for the purpose of this paper. It is though important to bear in mind that each player has as main interest the sake of the people it represents. Generally it can be stated that the government is probably interested in the general economy, the unemployment rate, the investors and the satisfactory of the constituents. Chrysler and Fiat are interested in the future success and financial stability of the two companies. The unions are interested in protecting the employees from being exploited by receiving minimal wages or being…show more content…
Though, some external factors increased the complexity of the process, forcing other parties and issues to be added to the negotiation table. The negotiation evolved therefore in a repeated negotiation where other parties became actors, thus increasing even more the complexity of finding an agreement. The first negotiation was played in the ZOPA of the two companies, Chrysler and Fiat. In these kinds on negotiations the final agreement is usually more beneficial for one player or the other; in fact, we can assume that the surplus of Fiat was bigger than the one of Chrysler, given the fact that Fiat entered the negotiation with a stronger position, considering its financial stability. Yet, after the first negotiation, the situation changed thanks to the entry of the new negotiators. The two original actors change role, becoming two allies and the achievement of a good deal was beneficial for both of

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