Chrysler forms alliance with Fiat

[DainBramaged]

Source: Detroit Free Press on line

Chrysler LLC said today it was striking an alliance with Fiat S.p.A. that will give the Italian carmaker 35% of Chrysler in return for sharing technology, manufacturing and management.

The deal must be approved by regulators, including the U.S. Treasury, which oversees a $4-billion rescue loan of Chrysler. Fiat did not commit any cash to the deal, and made no vows to do so in the future.


Chrysler said the deal would give it access to Fiat’s engine and other vehicle technology that Chrysler would build in its plants. Fiat will help sell Chrysler vehicles in foreign markets, where Chrysler lags its competitors today. And Chrysler said Fiat would “provide management services supporting Chrysler’s submission of a viability plan” to federal regulators.


"This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the government loan,” Chrysler Chairman and Chief Executive Bob Nardelli said in a statement.


Nardelli told employees in a memo that the agreement is expected to be completed as early as April, following the completion of a due diligence process and required approvals.


Read more: http://www.freep.com/article/20090120/BUSINESS01/90120021/Chrysler+forms+alliance+with+Fiat

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WOW!

[tosh]

1. Cool!

My last 2 vehicles are a Chrysler and a Jeep, both well made. An 1992 and a 2000, both still going strong.

Maybe my next will be a Chrysler/Fiat.

[leftinportland]

2. Good!

My first new car was a blue Fiat 128. Front wheel drive, would go anywhere, and economical. Despite what many say I made few visits to Tony the mechanic. As long as I kept it tuned it was happy.

[blue_onyx]

3. I hope this alliance is more beneficial...

than Chrysler's last venture with an European company.

[excess_3]

4. beneficial to whom?

in the last deal,
Chrysler took the stupid s**** at Daimler
to the cleaners

[blue_onyx]

5. Benefical to Chrysler.

After Daimler was done with Chrysler, it no longer had the low cost structure it did before the merger. Mercedes-Benz avoided sharing platforms and other technologies because of the fear that it could damage it's image. Chrysler was then sold off to an capital investment company that didn't have the company's best interest at heart. Cerberus wants to make as much money as it can from Chrysler and if they means selling the company off in pieces, they'll do it. It's Chrysler that got screwed in the last deal.

[Dulcinea]

6. Good.

My 2001 Town & Country is still going strong.

[hogwyld]

7. Sorry, but I drove a Fiat in Europe last year

and it was the most underpowered, uncomfortable, rattly piece of crap I've driven in a long time.

[musiclawyer]

8. Sorry. but Chrysler is dead man walking

Cerberus' purchase assured that. When Cerberus showed up. I figured they would flip the whole thing to Cherry or Hyundai or someone like that. But the landscape changed and they couldn't find a buyer who would assume the entire unit. ..... Cerberus is not a car company. It is a money company, and will sell Chrysler off in chunks if it has to.

[FLAprogressive]

9. all's I can think of is "Fix It Again Tony".....

:P

[DainBramaged]

10. When I was MUCH younger, and fixing cars was my livelihood

Fiat's (and Alfa's) ALL got that nickname. Renault's wern't considered very reliable either. But the people who worked on them had some really nasty shit to say about the parts channel.

Not so much now. Europe LOVES the 500.

[onager]

11. ...and a line from "Top Gear"

Guest: "I had a Fiat 124 Spyder. Loved it. I drove that car until I could see the road thru the rusted-out floorboards."

Jeremy Clarkson: "So you drove it about 40 yards, then..."

:rofl: