It was no secret why Italian automaker Fiat (NASDAQOTH: FIATY ) wanted Chrysler when nobody else did in 2009: Even in bankruptcy, Chrysler's size and resources had the potential to transform regional player Fiat into a global contender.
That's why Fiat took a majority stake in Chrysler and bet big resources on a Chrysler turnaround. That bet has paid off: Chrysler is solidly profitable now, and its products are surprisingly competitive. But while Fiat was nursing Chrysler back to health, it was losing ground at home to Volkswagen (NASDAQOTH: VLKAY ) , Ford (NYSE: F ) , and other rivals.
Now there's another threat to Fiat: The German luxury brands have pushed onto its turf. In this video, Fool contributor John Rosevear looks at the ground Fiat has given up in Europe -- and at the real reason Fiat's CEO is in such a hurry to complete his company's merger with Chrysler.
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