What's Next For Fiat Chrysler?

Fiat Chrysler Automobiles NV FCAU's merger talks with European automaker Renault fell apart, and the next step for the company is a return to "business as usual," according to Peter Cappelli, a management professor at Wharton School of Business.

What Happened

Fiat Chrysler cited political reasons in terminating its proposed merger of equals with Renault. Manley is now tasked with motivating his employees, as the merger would have created the world's third-largest car company by volume.

The top priority for the CEO will be to deliver news that is "not going to be very satisfying for people to hear," Cappelli told The Wall Street Journal. Employees need to understand the story of why the merger failed and know "where we're going," he said. 

Why It's Important

Fiat Chrysler said the company remains in a strong position to proceed as usual. Yet it has multiple challenges to overcome, including turning around its operations in China and Europe, according to WSJ. The company also needs to boost sales of high-end luxury brands like Maserati.

What's Next

Stephen Reitman, an analyst at Société Générale, told WSJ the car company may need to initiate a "reboot" of the Chinese business. Manley was directly responsible for the region before assuming the CEO title at Fiat Chrysler.

Related Links:

Analyst: Failed Fiat Chrysler-Renault Merger A Positive For FCA

Morgan Stanley: Fiat Chrysler's Proposed Tie-Up With Renault A 'Good Strategic Fit'