 Chrysler Forms Alliance with Fiat (No, Really!) |
In the way-out-of-left-field departments, Chrysler LLC and Fiat Group announced this morning a "global strategic alliance" - aimed at keeping Chrysler viable and giving Fiat a toe-hold in the American auto market (or what's left of it).
The deal gives Chrysler access to Fiat's technology (pizza-powered cars? [since I'm of Italian decent, I'm allowed to say this]) as well as Fiat's management services. In exchange, Fiat gets easy access to the North American market. The most interesting part of the deal is that Fiat gets 35% of Chrysler for nothing. Nada. Zip. Zilch.
From the Chrysler blog:
The alliance, to be a key element of Chrysler’s viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler’s submission of a viability plan to the U.S. Treasury as required. Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base.
Forbes is also covering this news - perhaps with the best headline: "Chrysler's Italian Savior" (reminds me of a cheap romance novel title - not that I ever read them).
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| wjsiii | Posted: 2009/1/22 13:15 Updated: 2009/1/22 13:15 |
Quite a regular   Joined: 2005/7/16 From: Posts: 61 |
 Re: Chrysler Forms Alliance with Fiat (No, Really!)Good....let's hope that this brings some economic prosperity to Chrysler and I also hope that this fast tracks the return of Alfa Romeo (a Fiat holding) to the US.
I love the Jeep brand but Alfa has always held an even dearer spot in my heart! Oh and the Fiat 500 is one cool little ride.....one in the garage for my wife would be sweet. |
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| kevinsullivan30018 | Posted: 2009/1/21 8:45 Updated: 2009/1/21 8:45 |
Not too shy to talk  Joined: 2003/10/21 From: Posts: 28 |
Re: Chrysler Forms Alliance with Fiat (No, Really!) Fiat lists 18 different models on their website. Seems like they should do some paring down themselves.
They also better buy some more bandwidth for their website if they plan on marketing anything over here. |
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| 01TJ | Posted: 2009/1/20 12:50 Updated: 2009/1/20 12:50 |
Just can't stay away  Joined: 2006/8/25 From: Posts: 71 |
Re: Chrysler Forms Alliance with Fiat (No, Really!) Oh joy, another grand plan to allow another country to own a large portion of a US company and giving more of the already dismal market share to a foreign company. Way to sell our Chrysler.
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| highdesert | Posted: 2009/1/20 10:09 Updated: 2009/1/20 10:09 |
Not too shy to talk Joined: 2006/1/9 From: Posts: 29 |
Re: Chrysler Forms Alliance with Fiat (No, Really!) This is good news. Fiat makes some interesting small fuel efficient vehicles. Maybe we can finally get away from the bloated jeeps we have been seeing in recent years and get back to basics.
Look forward to getting the Panda 4x4, one of the top rated 4x4s for reliability, with the turbo-diesel and six speed manual tranny. Here's a funny youtube of Panda vs LandRover: http://www.youtube.com/watch?v=fAg4DdXAp7Y And, perhaps, the Fiat Abarth 500 is what the Compass should have been, |
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| kevinsullivan30018 | Posted: 2009/1/20 7:57 Updated: 2009/1/20 7:57 |
Not too shy to talk Joined: 2003/10/21 From: Posts: 28 |
Re: Chrysler Forms Alliance with Fiat (No, Really!) Things must be looking up. Daimler had to PAY Cerebus 500M Euros to take Chrysler off their hands. Now they are able to GIVE 35% away for FREE. As long as I can get a lift kit and big tires for my new Fiat/Patriot with a 3 cylinder engine, I'll be happy.
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