There are specific reasons why Chrysler did not enter the Indian Automobile market. It was essentially a combination of bad luck and failed alliance with Daimler. The American carmaker has now filed for bankruptcy owing to which its Indian foray looks bleak.

The top priority for Chrysler would be to set its books in order and think of options to stay afloat in the medium term. The company’s new lifeline is Fiat SpA of Italy, which will take a 20 per cent stake initially and may even consider majority control once the $8-billion loans to the US Government are squared up.

Chrysler was keen to invest in India once the gates were thrown open in the early 1990s. Quite unlike the others, it had a comfy head start and was preparing to join hands with Mahindra & Mahindra to manufacture Jeep Cherokee here.

Things were gradually progressing till M&M resolved to team up with Ford Motor Company instead in 1995. Chrysler was reportedly nonplussed at the dramatic turn of events. The only way Chrysler could continue its India dream was to find a local partner.

With the Fiat tie-up, it now remains to be seen how soon Chrysler will get back on its feet. The Italian company, of course, has a joint venture with India’s Tata Motors. Incidentally, Chrysler and the Tatas were in talks to jointly develop a battery version of the Ace pickup for markets such as Europe. In return, the Indian company would retail Jeep Wrangler in India. Will Fiat make this happen in its new alliance with Chrysler? This is yet to be seen.

Best Selling Car Models: Audi | BMW | Chevrolet | Fiat | Ford | Honda | Hyundai | Mahindra | Maruti | Mercedes | Mitsubishi | Skoda | Tata | Toyota | Volkswagen | Volvo | Nissan | Lexus

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Books on Chrysler:
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Posted by Amrith K.A on 2 May, 2009 5:28:04 PM IST #