When investment in innovation pays off

You might ask: But how has Fiat managed to buy 35% of Chrysler in the midst of a crisis hardly hitting car makers all around the world?

The answer is the successful launch of two models onto the market – the Fiat 500 and the Fiat Punto – and a successful investment in making its operations more efficient, says Forbes.com.

How much has Fiat paid for its stake in Chrysler? Fiat has paid technology.

In fact, Fiat did not even pay  single cent into the company but has instead agreed to transfer its technology in the production of small and mid-sized cars.

Simply put, this is an example of the benefits of years of investment in innovation.

If Fiat can do it, everyone can.

Euro car industry, Latvia are running low on fuel

€40 billion is needed to save the European car industry from collapse, European car maker association president Carlos Ghosn said today. This news came as reports suggest that more than 1,300 employees could face the sack in troubled car make Jaguar-Land Rover.

Car makers in Europe were urged to keep a close eye on the outcomes of the proposed plan by President Obama to bail out US car makes, argued EU Industry Commissioner Geunter.

Latvia is also in need of help. The Finance Ministers of the European Union agreed to give the troubled Baltic EU member state a €3.1 billion loan.

Meanwhile, Fiat announced it acquired a 35% stake in Chrysler. The New York Times reported, Sergio Marchionne,  the chief executive of Fiat saying in a statement:

“This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process,”

Jurys Inns, a small British hotel chain, was a rare source of good news as it announced the creation of 300 jobs as it intends to build new hotels in Newcastle-upon-Thyne, Portsmouth and Glasgow.

Fiat confirms it’s in talks with Chrysler

Fiat just confirmed it’s in talks with American carmaker Chrysler.

The Italian Job – Fiat in talks with Chrysler

Italian carmaker Fiat is in talks to buy a stake in Chrysler, Il Sole 24 Ore reports.