Type 1: Partner to Innovate

A company wants to develop a new product or service but does not have the relevant knowledge or technique.  Collaborating with a business which does have the right capabilities will create a mutually beneficial result as each side brings their own relevant areas of expertise.

The Ford/Fiat Collaboration

The 2007 strategic collaboration between Ford and Fiat is a good example of a Type 2 collaboration in practice.

Fiat/Ford Collaboration imageThe two motor industry giants co-operated on the joint development and production of the Fiat 500 and the replacement to the original Ford Ka, with Ford and Fiat engineers using Fiat’s Polish manufacturing facilities to design and develop an identical chassis for both cars, differentiated only by their distinctive body shapes. The result of this co-production was huge financial savings for both businesses partners through the sharing of facilities and expertise, and increased sales for both companies.

“The strategic cooperative agreement with Ford represents another milestone in our strategy that calls for targeted alliances aimed at sharing financial and industrial resources on new products and platforms,” said Sergio Marchionne, CEO of Fiat Group and Fiat Auto. “It is consistent with successful ventures, established with major partners including PSA Peugeot Citroën and Suzuki, and current discussions with the Indian group Tata Motors.”

Images courtesy and copyright of Fiat & Ford

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