Chrysler considering other partners should feds veto Fiat deal

[SVT666]

Chrysler considering other partners should feds veto Fiat deal

Though things seem to be progressing positively on the proposed Chrysler-Fiat alliance, the two automakers have to consider the possibility of a deal rejection from the United States Treasury Department. Chrysler?s Vice Chairman and President Jim Press told reporters that the automaker is still considering less-extensive tie-ups with other automakers.

?If it doesn?t work out with Fiat, we still have had other conversations with other potential partners and alliances and those obviously can continue, so we have other alternatives,? Press told reporters yesterday. ?It?s a little bit like dating: Nobody knows who we?re dating. We don?t need the paparazzi to follow us around and put pressure on the dates.?

Both Chrysler and Fiat have said that alliances are the way of the future for their continued survival. Chrysler already has two small alliances with Volkswagen and Nissan, though the plan for Fiat to acquire 35 percent of Chrysler is by far the most comprehensive.

A clause in Chrysler?s $4 billion government loan agreement says that the automaker must receive Treasury approval. Some Washington critics have said that the loan was only intended for an American company and that, even though Fiat won?t receive any cash in the alliance, the Italian automaker will benefit as a result of Chrysler?s improved financial situation.

?It will make the government a lot more confident that the repayment is going to occur on schedule,? Press said, speaking of the newfound strength the Michigan automaker would have with the tie-up.

Press also said that the Fiat tie-up would secure American jobs that would be lost of Chrysler wasn?t able to succeed.

?By allowing us to use the capacity of North American plants to build those (Fiat) vehicles and export them, they?re preserving American jobs - a lot of American jobs,? he said.

[Raza]

The Treasury can stop this deal from happening?

[2o6]

If it's vetoed, then Chrysler will go down, and jobs WILL be lost. No other company is willing to take over the excess that Chrysler has except for FIAT. The rest, (nissan, and others) either don't need it, or have nothing to fill it with. (Tata and the Chinese)

[NomisR]

Chinese will buy it and change the names to something meaning less like the way they did to MG... oh the horrors..

[Vinsanity]

"It will make the government a lot more confident that the repayment is going to occur on schedule," Press said, speaking of the newfound strength the Michigan automaker would have with the tie-up.

That should be the only thing the treasury should concern themselves with right now as a lender of the bailout money.

Of course, the jobs are a big plus as well, arguing in support of the merger.

[2o6]

Chinese will buy it and change the names to something meaning less like the way they did to MG... oh the horrors..

They didn't have the rights to the Rover name. and MG is fine........

[NomisR]

They didn't have the rights to the Rover name. and MG is fine........

Modern Gentleman though, that just killed the brand right now??   

[Raza]

Modern Gentleman though, that just killed the brand right now??   

They did subtly put out a new sports car buy selling the old sports car and painting it orange.