The Merger Between Chrysler and FiatIn today's world, many mergers and acquisitions occur as a result of financial losses, gaining an advantage over a competitor, increasing capabilities, and strengthening services by diversifying products. There are numerous other reasons, but this article will focus on the reasons stated above. The merger between Chrysler and Fiat came after many years of ups and downs for each company. Chrysler had previously merged unsuccessfully with a German company called Daimler-Benz AG (Boone & Kurtz, 2013). Daimler subsequently sold 80% of the shares to the American private equity firm Cerebus. Again, this didn't work to the company's advantage. Things continued to fall apart for Chrysler. Fiat also had a history of crises and recoveries. At the beginning of the last decade, Fiat was almost the product of failure. Due to the deaths of two family members, management changes, and financial losses, Fiat was able to merge with Chrysler in January 2014, to form Chrysler Group, LLC. Circumstances Leading to the Merger On April 30, 2009, Chrysler filed for Chapter 11 bankruptcy and announced at that time they would enter into a partnership with Fiat. The Chief Executive Officer (CEO) of Chrysler stated: “In the life of every great organization and its employees, there are defining moments that go down in the history books.” For Fiat and Chrysler, the agreement they just reached with VEBA is clearly one of those moments (Ebhardt, 2014). The merger between Chrysler and Fiat was beneficial to both companies. For Chrysler, Fiat helped save it from bankruptcy in 2009. The financial crisis, after 15 years of other mergers, had left the company in a critical state. This critical state... middle of paper... would be due to employee numbers, wages and benefits. American employees who previously received $28 an hour will now receive $14, employees have fewer benefits and a change in healthcare for retirees (Barile, 2014). Overall, based on the information listed here, human resource management practices have changed due to the recent merger between Chrysler and Fiat. Many of the changes resulting from the merger are influenced by Europe based on the two-to-one ratio at the executive level. Conclusion Although many changes have occurred in two different societies, many of the changes appear to be positive for both entities. Profits are rising and a business plan is in place to grow the company to possibly become a global leader in the automotive industry. This is a new beginning for Chrysler Group, LLC and a new chapter in the company's history.