This case finds Chery after the collapse of its alliance with Chrysler. For Chrysler it meant losing one of its most promising routes to building a competitive small-car lineup for consumers who were pinched at the pump by rising gas prices. For Chery, it meant losing Chrysler’s technical ability, quality, and regulatory ratings consistent with U.S. and Western European markets. Students place themselves in the shoes of Chery executives as the company goes about creating a new strategy to tap into the U.S. and European markets.
Chery Automobile: Vying for a Piece of the American Pie B
by: John Branch
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After reading and discussing the material, students should:
- Introduce the nature and scope of alliances.
- Identify the competitive rationale for alliances.
- Enumerate the risks of alliances.