Italy’s legendary Alfa Romeo running
on German engineering. Harley Davidson hogging the European motorcycle market.
The likely benefits of strategic
alliances partnerships for Italian companies have fuelled two recent mergers.
Fiat and BMW recently signed a
memorandum of understanding to develop a common platform for future models of
the Alfa Romeo MiTo and Mini cars, a move that would allow both carmakers to
cut costs. The agreement also provides support for Alfa Romeo to re-enter the
North American market. Sources say the Alfa Romeos could be built in BMW’s
production plant in Southern California.
Fiat CEO Sergio Marchionne
stated that ‘This is an important step in our strategy of targeted alliances.
We are glad to work with such an esteemed and respected partner with a clear
goal of boosting the competitiveness of both partners.’ Marchionne’s strategy
of ‘targeted alliances’ has helped turn Fiat around from its financial
troubles: the Turin-based company now returns a profit and continues to
increase its market share.
Meanwhile, U.S.-based Harley
Davidson recently acquired the financially troubled Northern Italian motorcycle
maker MV Agusta for 70 million euro. Primarily intended to expand Harley
Davidson’s presence in Europe, the acquisition was a win-win
deal, thanks to MV Agusta’s notable market share. MV Agusta produces
high-performance sports bikes under the legendary MV Agusta brand and a line of
lightweight motorcycles sold under the Cagiva banner.
