Car manufacturing group Fiat and Chrysler have contracted IBM to integrate their separate IT infrastructures into a single global operation, following the companies coming together after Chrysler applied for Chapter 11 bankruptcy in 2009.
The agreement will also see the IT systems of subsidiary CNH Industrial.
As a result, Fiat and Chrysler will be able to share resources such as dealer networks and vehicle design operations.
The sharing of resources will have major benefits in manufacturing and sales. By combining engineering applications the companies will share best practice and the integration of dealer network IT will give them a better insight into customers.
The agreement extends a longtime partnership between IBM and Fiat, which in 2005 announced a $1.2 billion IT outsourcing deal. The new agreement provides infrastructure management and hosting for the global email for more than 150,000 staff globally.
“Combining Chrysler and Fiat’s IT infrastructure services into a global capability is a critical step in our journey to building a powerful and agile global operation that supports our company’s growth strategy,” said Scott Sandschafer, CIO at Chrysler Group.
“This agreement, an extension of a decade-long partnership with IBM, will continue to provide the technology innovation, global delivery capabilities and cost effectiveness required to optimise and grow our business worldwide,” said Fiat CIO Gilberto Ceresa.