The merger of Chrysler and FiatIn today's world, many mergers and acquisitions occur as a result of financial losses, allowing to gain an advantage over a competitor, d increase capacities and strengthen services by diversifying products. . There are many other reasons, but this article will focus on the reasons given above. The merger between Chrysler and Fiat occurred after many years of ups and downs for each company. Chrysler had already merged, unsuccessfully, with a German company called Daimler-Benz AG (Boone & Kurtz, 2013). Daimler then sold 80 percent of its stake to a US private equity firm, Cerebus. Again, this was not to the company's advantage. Things continued to get worse for Chrysler. Fiat has also had a history of crises and recoveries. At the start of the last decade, Fiat was almost the result of bankruptcy. Thanks 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. Chrysler's chairman and CEO said, "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 just concluded with VEBA is clearly one of these moments (Ebhardt, 2014). The merger between Chrysler and Fiat was beneficial for both companies. For Chrysler, Fiat helped save them from bankruptcy in 2009. The financial crisis, after 15 years of other mergers, left the company in critical condition. This critical state... middle of document ...... is believed to be due to the number, salaries and benefits of employees. American employees who previously received $28 an hour will now receive $14, employees will receive fewer benefits, and a change in retiree health care (Barile, 2014). In total, based on the information listed here, human resource management practices have been changed due to the recent merger of Chrysler and Fiat. Most of the changes resulting from the merger are influenced by Europe, on a two-for-one basis at the management level. Conclusion Although many changes have occurred in two different companies, many of them appear to be positive for both entities. Profits are increasing and a business plan is in place to grow the company to eventually become a global leader in the automotive industry. This is a new beginning for Chrysler Group, LLC and a new chapter in the history of this company..