You won’t need a link to find references to Ken Lewenza’s response to Fiat’s “take-it-or-leave-it” offer (on April 16, 2009). This story is moving quickly,  so my thoughts may quickly be irrelevant. Mr. Lewenza cried foul that Fiat CEO Sergio Marchionne was not taking the time to “build the relationship” with Chrysler and its employees before embarking on this joint venture.

I am all about the “relationship” side of the business. There is a place for relationships in the Fiat/Chrysler landscape, and I think that Mr. Marchionne is familiar with the value of relationships, as well. I suspect, he has simply opted to put results first. If my guess is right, this is a strategic direction given that his company is operating in a fiercely competitive environment and cannot afford to make any concessions that are disproportionate to added value. I think that his shareholders (and business partners) would applaud that.

Relationships are absolutely necessary, but in some instances, it will have to be compromised. I think this is one of those situations. Maybe it is a dose of “tough love” to an entity who no longer has a competitive wage structure.

Tags: Tags: Chrysler, Fiat, Ken Lewenza, Negotiations, relationships in business, Sergio Marchionne —

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