http://www.foxbusiness.com/story/markets/industries/transportation/report-fiat-talks-possible-chrysler-stake/
Yet another story for the FIAT group to enter the US Market again.....
:hammerhead:
I hope but these meetings are sooo reoccuring..
Dodge Panda?
Woo, a Chrysler w/ a Ferrari engine!!!
I can see the FIAT 500 as the next PT Cruiser
Quote from: Yawn on January 19, 2009, 03:28:40 PM
I can see the FIAT 500 as the next PT Cruiser
We can only hope.
I just roll my eyes about the FIAT group outside of the Exotics...
No more articles.. just do it.. Ill believe when I see a FIAT or Alfa on the roads..
Quote from: NomisR on January 19, 2009, 03:26:21 PM
Woo, a Chrysler w/ a Ferrari engine!!!
Hmmm... Jeep with a Ferrari engine. Mr. Harrah was ahead of his time! :ohyeah:
Quote from: Yawn on January 19, 2009, 03:28:40 PM
I can see the FIAT 500 as the next PT Cruiser
The Fiat 500 is not a chick car, so that's not possible.
Quote from: HEMI666 on January 19, 2009, 04:57:31 PM
The Fiat 500 is not a chick car, so that's not possible.
Whatever you say...
(http://farm1.static.flickr.com/176/461936300_9a93029725.jpg)
Quote from: NACar on January 19, 2009, 04:59:44 PM
Whatever you say...
(http://farm1.static.flickr.com/176/461936300_9a93029725.jpg)
That's an old one. The new one, espcially the Abarth SS, is so goddamn manly, no chick would want one. :rockon:
(http://www.motorauthority.com/wp-content/uploads/Fiat/500/Abarth/Fiat_500_abarth01.jpg)
It's got scorpions on it. Fuck yeah!
What about a Chrysler Sedici to replace the PT Cruiser?
Quote from: USA_Idol on January 19, 2009, 05:07:36 PM
What about a Chrysler Sedici to replace the PT Cruiser?
That's dumb. A Sedici is nothing but a badge-engineered Suzuki SX4.
CHIEFS + LIONS =
Will it have, ahem, Corinthian Leather?
Chrysler and GM
Chrysler and Nissan-Renault
Chrysler and the Chinese
Chrysler and VW
Now Chrysler and Fiat.
It won't happen. Some people read too much into high-level meetings between companies.
Chrysler as a whole isn't a very attractive business option. In chunks, maybe, but otherwise, no.
I don't get it ... It like picking the last kid at the play ground... do we really need Chysler??? Do we?
Quote from: YO on January 19, 2009, 07:48:38 PM
I don't get it ... It like picking the last kid at the play ground... do we really need Chysler??? Do we?
Dear Yo,
Shut up! In fact the energy you're using to type is greatly increasing global warming. Don't question it, just believe me. Shooo! Leave! Be gone wit chu!
Love,
the Teuton :wub:
Holy crap... you're like old enough to drive now!! Congratulations. no more passenger seat opinions from ya!
Quote from: the Teuton on January 19, 2009, 07:50:51 PM
Dear Yo,
Shut up! In fact the energy you're using to type is greatly increasing global warming. Don't question it, just believe me. Shooo! Leave! Be gone wit chu!
Love,
the Teuton :wub:
Quote from: the Teuton on January 19, 2009, 07:50:51 PM
Dear Yo,
Shut up! In fact the energy you're using to type is greatly increasing global warming. Don't question it, just believe me. Shooo! Leave! Be gone wit chu!
Love,
the Teuton :wub:
Dear Teuty-Patooty
Yo is right. No one in their right mind would touch Chrysler even if it had b00bies.
Why do you hate Fiat?
Love,
TIMMAH!
Quote from: Tave on January 19, 2009, 08:09:57 PM
Dear Teuty-Patooty
Yo is right. No one in their right mind would touch Chrysler even if it had b00bies.
Why do you hate Fiat?
Love,
TIMMAH!
Dear Tavey Wavy,
I like Fiat, and I think YO is rather annoying in a trollish kinda way. He seems relatively well-educated, and he doesn't seem too ignorant; just trollish.
It's grating.
Do you want a new 500, too? Will we ever get Fiat or Alfa back here?
Be well.
Sincerely,
Your friendly neighborhood Teuton
Quote from: the Teuton on January 19, 2009, 08:12:20 PM
Dear Tavey Wavy,
I like Fiat, and I think YO is rather annoying in a trollish kinda way. He seems relatively well-educated, and he doesn't seem too ignorant; just trollish.
It's grating.
Do you want a new 500, too? Will we ever get Fiat or Alfa back here?
Be well.
Sincerely,
Your friendly neighborhood Teuton
Dear Teuton,
Yo may be a troll, but that girl in his sig has magnificent eyelids.
The 500 is superb, but my next car is going to have a live axel, 300 horsepower, locking differentials, and 40 cubic feet of cargo space. The Aveo has got to go, and I don't need a better one.
Sin------,
Washington Irving
You're getting an MDX??
Quote from: Tave on January 19, 2009, 08:31:35 PM
Dear Teuton,
Yo may be a troll, but that girl in his sig has magnificent eyelids.
The 500 is superb, but my next car is going to have a live axel, 300 horsepower, locking differentials, and 40 cubic feet of cargo space. The Aveo has got to go, and I don't need a better one.
Sin------,
Washington Irving
I'm thinking 4Runner.
4Runner, Great truck... the MDX is noticebly larger on the inside if you need it.
Quote from: the Teuton on January 19, 2009, 08:35:42 PM
I'm thinking 4Runner.
BAH! The 4runner is not a real truck anymore. I'd like a Taco or Tundra.
The MDX is pretty tits too, but I couldn't treat her right. I need something I can throw off a cliff and laugh as it plummets to the rocks below.
Quote from: YO on January 19, 2009, 08:37:12 PM
4Runner, Great truck... the MDX is noticebly larger on the inside if you need it.
But it's accord based.........
Quote from: 2o6 on January 19, 2009, 08:43:21 PM
But it's accord based.........
And accords are just horrible, horrible cars.
Quote from: NACar on January 19, 2009, 08:45:54 PM
And accords are just horrible, horrible cars.
If you're looking for a "true" off roader, I don't think I'd get an MDX. I like it, though.
Quote from: Tave on January 19, 2009, 08:31:35 PM
Dear Teuton,
Yo may be a troll, but that girl in his sig has magnificent eyelids.
The 500 is superb, but my next car is going to have a live axel, 300 horsepower, locking differentials, and 40 cubic feet of cargo space. The Aveo has got to go, and I don't need a better one.
Sin------,
Washington Irving
Give me your Aveo when you're done. I've always wanted one just like yours.
Quote from: NACar on January 19, 2009, 08:47:44 PM
Give me your Aveo when you're done. I've always wanted one just like yours.
If you're lucky the driver's side door might start to rust where I massacred that reflector poll last winter. :wub:
Quote from: 2o6 on January 19, 2009, 08:47:05 PM
If you're looking for a "true" off roader, I don't think I'd get an MDX. I like it, though.
Wrong. Offroad, MDX > Jeep
Back on topic:
Holy shit, this is awesome!
http://online.wsj.com/article/SB123238519459294991.html
so... fiat 500 for the USA?
I can't wait to buy the "Avenger, by Fiat."
They really want the FIAT 500 here.. If they bring the Abarth here I may be a customer...
So if this goes through can I pull up to the next Ferrari i see in traffic and ask if "that thing got a Hemi??"
Looks like its a done deal.. Fiat takes 35%
http://money.cnn.com/2009/01/19/autos/chrysler_fiat.reut/index.htm?postversion=2009012007
The 500 Abarth looks pretty bad ass. If the SS Abarth could be had for a decent price too, I think it'd be a great Mini Cooper S competitor.
Hopefully we'll see some Alfa's from this deal too. From everything that I've read so far, it looks like we will.
Wonder what their time frame is now. I know they have been wanting to come here for ages and this is the Key..
Unfortunately we changed the locks a few years ago. :lol:
Hopefully this'll be good for both brands, but I'm not going to hold my breath. Fiat will have a lot of work to do if it wants to ride Chrysler's ragged coat-tails to North American glory.
I'll take a Fiat 500 Abarth SS right fucking now....please! It's 13,500 in Britain so I can't see it being very expensive over here.
Quote from: HEMI666 on January 20, 2009, 09:05:43 AM
I'll take a Fiat 500 Abarth SS right fucking now....please! It's 13,500 in Britain so I can't see it being very expensive over here.
That's still $18,500 or so here in the US. Cheap, but not a crazy steal by any means.
Quote from: MrH on January 20, 2009, 09:21:39 AM
That's still $18,500 or so here in the US. Cheap, but not a crazy steal by any means.
It's worth every penny. I would buy one for $18,500 in a heartbeat.
"That's 160 hp in a car the size of a shoe. That's fantastic!" - Jeremy Clarkson
(http://www.motorauthority.com/wp-content/uploads/Fiat/500/Abarth/Fiat_500_abarth01.jpg)
Quote from: HEMI666 on January 20, 2009, 09:53:04 AM
It's worth every penny. I would buy one for $18,500 in a heartbeat.
"That's 160 hp in a car the size of a shoe. That's fantastic!" - Jeremy Clarkson
(http://allworldcars.com/wordpress/wp-content/uploads/2008/02/fiat_500_abarth.jpg)
The 500 Abarth only has 133 hp. The Abarth SS has 158 hp, but will be considerably more expensive.
Quote from: MrH on January 20, 2009, 10:01:13 AM
The 500 Abarth only has 133 hp. The Abarth SS has 158 hp, but will be considerably more expensive.
I said I want the SS, and Clarkson said the Abarth SS starts at 13,500 pounds.
Top Gear - Fiat 500 Abarth SS test (http://www.youtube.com/watch?v=QvRxSK2ZViI)
I want the Alfa Romeo 159 Wagon.. In Red with Tan Leather. A summer debut would be perfect..
Quote from: Yawn on January 20, 2009, 10:18:15 AM
I want the Alfa Romeo 159 Wagon.. In Red with Tan Leather. A summer debut would be perfect..
I like it too, but I just love the MiTo. If Alfa comes back with Fiat, then I'm going to have a helluva time picking between the 500 Abarth SS and the MiTo:
(http://image.motortrend.com/f/auto-news/alfa-romeo-approves-new-mito-badge/9437840+cr1+re0+ar1/2009-alfa-romeo-mito-side.jpg)
yeah that is a great design.... Those are home runs!
I want a Lancia Thesis damnit!! ;)
Quote from: Yawn on January 20, 2009, 10:33:53 AM
yeah that is a great design.... Those are home runs!
I want a Lancia Thesis damnit!! ;)
I hope you're joking. That is one ugly ass car.
yeah put think of all the attention youll get! lol
what about the Lancia Murano?.. I mean Delta ;)
Quote from: Yawn on January 20, 2009, 11:02:17 AM
yeah put think of all the attention youll get! lol
what about the Lancia Murano?.. I mean Delta ;)
Lancia's lineup is full of ugly shit right now. Too bad. They used to have cool cars.
Quote from: HEMI666 on January 20, 2009, 10:10:41 AM
I said I want the SS, and Clarkson said the Abarth SS starts at 13,500 pounds.
Top Gear - Fiat 500 Abarth SS test (http://www.youtube.com/watch?v=QvRxSK2ZViI)
Ah, my fault. I thought that's what the base 500 started at for some reason.
That's a pretty good deal then.
Stylish, sporty, fun compact cars...sign me up!
Quote from: HEMI666 on January 20, 2009, 11:03:28 AM
Lancia's lineup is full of ugly shit right now. Too bad. They used to have cool cars.
The Delta is hot. The rest..........not so much.
Quote from: 3.0L V6 on January 19, 2009, 07:19:30 PM
Chrysler and GM
Chrysler and Nissan-Renault
Chrysler and the Chinese
Chrysler and VW
Now Chrysler and Fiat.
Most likely scenario:
Chrysler and Bankruptcy Court.
The 500 Abarth would be an awesome (but indirect) SRT-4 replacement.
Quote from: 2o6 on January 20, 2009, 11:50:19 AM
The Delta is hot. The rest..........not so much.
It looks like a Chinese knockoff. It's not good looking at all.
(http://www.autospectator.com/cars/files/images/Lancia-Delta-Monte-Carlo.jpg)
Quote from: 2o6 on January 19, 2009, 05:10:45 PM
That's dumb. A Sedici is nothing but a badge-engineered Suzuki SX4.
I know exactly what the Sedici is. You are not the only one with an appreciation for European cars. :evildude:
Point is that the Sedici is part of the FIAT line, the SX4 isn't. And the Sedici is still a better-looking, more modern and more appealing package (if somewhat less versatile) than the current PT Cruiser.
Damn.. Dont they learn through Mini, Scion, etc...Only an idiot would say that the FIAT 500 would not do well here..
A taste of Italy
For its part, Chrysler has promised to assist Fiat with bringing its brands to the U.S. market. Only Ferrari and Maserati are currently sold here and Fiat has long wanted to bring the luxury Alfa Romeo name back to the U.S.
In addition to those brands and the mass-market Fiat brand, the Italian carmaker also makes and sells the Lancia brand.
In order to move Fiat small cars more quickly into its dealerships, Chrysler could forego restyling them as Chrysler or Dodge products, said David Soya, editorial director for auto industry news site WardsAuto.com.
In the short term, Magliano suggested that Chrysler and Fiat could make minor changes to Fiat products - just enough to meet U.S. crash safety and emissions standards - and simply sell them through the Chrysler, Dodge and Jeep dealer network under the original Fiat name.
Fiat's 500 subcompact "city car" has been a hit in Europe. Taking a cue from BMW's success with the retro-styled Mini Cooper, the current Fiat 500 is clearly an updated remake of the 1960s classic. (The classic 500 is probably best known to Americans in the role of Luigi the tire salesman in the 2006 Pixar movie "Cars.")
But Hossack thinks the 500 is probably too small for American tastes. "A relatively large car for Fiat may be appropriate for Chrysler here," he said, suggesting that something like the mid-sized Bravo or the mid-sized Grand Punto might stand a better chance here.
Fiat could also use some of Chrysler's under-utilized manufacturing facilities to build its products here. That would help Fiat by avoiding monetary exchange rate problems that have hampered other European automakers that sell cars in the U.S. but don't manufacture them here.
Quote from: Yawn on January 20, 2009, 02:13:50 PM
Damn.. Dont they learn through Mini, Scion, etc...Only an idiot would say that the FIAT 500 would not do well here..
A taste of Italy
For its part, Chrysler has promised to assist Fiat with bringing its brands to the U.S. market. Only Ferrari and Maserati are currently sold here and Fiat has long wanted to bring the luxury Alfa Romeo name back to the U.S.
In addition to those brands and the mass-market Fiat brand, the Italian carmaker also makes and sells the Lancia brand.
In order to move Fiat small cars more quickly into its dealerships, Chrysler could forego restyling them as Chrysler or Dodge products, said David Soya, editorial director for auto industry news site WardsAuto.com.
In the short term, Magliano suggested that Chrysler and Fiat could make minor changes to Fiat products - just enough to meet U.S. crash safety and emissions standards - and simply sell them through the Chrysler, Dodge and Jeep dealer network under the original Fiat name.
Fiat's 500 subcompact "city car" has been a hit in Europe. Taking a cue from BMW's success with the retro-styled Mini Cooper, the current Fiat 500 is clearly an updated remake of the 1960s classic. (The classic 500 is probably best known to Americans in the role of Luigi the tire salesman in the 2006 Pixar movie "Cars.")
But Hossack thinks the 500 is probably too small for American tastes. "A relatively large car for Fiat may be appropriate for Chrysler here," he said, suggesting that something like the mid-sized Bravo or the mid-sized Grand Punto might stand a better chance here.
Fiat could also use some of Chrysler's under-utilized manufacturing facilities to build its products here. That would help Fiat by avoiding monetary exchange rate problems that have hampered other European automakers that sell cars in the U.S. but don't manufacture them here.
Small cars in the US are usually ass ugly, but if Fiat and Alfa Romeo brought the MiTo and the 500 to North America they would do very very well. They are stylish, go like stink, and are affordable, yet a little more upmarket then standard small cars.
Quote from: Byteme on January 20, 2009, 11:51:38 AM
Most likely scenario:
Chrysler and Bankruptcy Court.
Quote from: Byteme on January 20, 2009, 11:51:38 AM
Most likely scenario:
Chrysler and Bankruptcy Court.
Actually the Fiat-Chrysler deal sounds like it's a "done" deal.
That really puts Chrysler in a much healthier position than GM or Ford IMO. ;)
:confused:
If anything I'd say this puts Fiat in a more precarious position, and Chrysler in an AMC-circa-1979-when-Renault-bought-into-them position.
The writing is on the wall. Chrysler will cease to exist within the next ten years.
Quote from: 93JC on January 20, 2009, 03:24:05 PM
:confused:
If anything I'd say this puts Fiat in a more precarious position, and Chrysler in an AMC-circa-1979-when-Renault-bought-into-them position.
The writing is on the wall. Chrysler will cease to exist within the next ten years.
Chrysler's situation is less precarious than their situation a few days ago, where they could have ceased to exist within the next ten months.
Quote from: Tave on January 19, 2009, 08:41:49 PM
BAH! The 4runner is not a real truck anymore. I'd like a Taco or Tundra.
Get one from overseas then..
Quote from: ifcar on January 20, 2009, 03:27:40 PM
Chrysler's situation is less precarious than their situation a few days ago, where they could have ceased to exist within the next ten months.
True, I know what you're saying. The point I'm trying to make is that Chrysler has for all intents and purposes been operationally taken over by Fiat. Watch for Nardelli and crew to get the boot within weeks. Production of all Chrysler cars will end within the next five to ten years. All financial investment in Chrysler engineering will cease ASAP.
Fiat buying Chrysler didn't delay the inevitable so much as it IS the inevitable: being bought out and incrementally phased out. The only things Fiat stands to gain are:
- manufacturing capacity
- dealer network
- engineering odds and ends
That's it. Fiat didn't 'save' Chrysler today: Fiat threw Chrysler into the coffin. Over the course of the next few years Fiat will nail it shut. Fiat isn't Chrysler's saviour: Fiat is the angel of death.
the following articles make it sound (nearly) final. a lot of great information...
THE FIAT-CHRYSLER ALLIANCE
Fiat Plans to Acquire 35% Stake in Chrysler
Alliance Would Fill Gaps in Each Automaker's Business
By: Luca Ciferri
For: Automotive News
On: January 20, 2009 - 3:15 am ET (UPDATED: 1/20/09 4:45 p.m ET)
TURIN, Italy -- Both Fiat S.p.A. and Chrysler LLC would fill significant gaps in their global businesses with the proposed alliance announced today.
The deal would give Fiat Auto, which sells virtually no vehicles in the United States, manufacturing capacity and a U.S. sales network. It also would give Fiat Auto the global automotive volume that Fiat Group CEO Sergio Marchionne says the company needs to survive.
Chrysler, meanwhile, could expand its product portfolio to include Fiat's small, less-polluting cars and gain distribution in Europe and Latin America. Chrysler could add volume to its U.S. plants by building Fiat vehicles for sale here.
One thing Chrysler doesn't get is money. The deal, which would give Fiat an initial 35 percent stake in Chrysler, involves no cash investment.
A joint statement by Chrysler, Fiat and Chrysler's majority owner, Cerberus Capital Management LP, said "the alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future."
The nonbinding agreement is subject to due diligence and regulatory approval.
It appears that Fiat's stake would come entirely from Chrysler's majority owner, Cerberus, and not from Daimler AG, which has been trying to sell its remaining 19.9 percent stake in Chrysler.
The UAW supports the deal.
Automotive News Europe first reported the pending transaction on Monday.
Fiat Vice Chairman John Elkann told reporters today that the Italian group could increase its Chrysler stake from the initial 35 percent. According to press reports, Fiat will have an option to take as much as 55 percent.
"We can raise that" initial share, Elkann said, without being specific. "It's a good deal. ... We have already said that it's important to have consolidation in the auto sector."
The pact "would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrains and components to be produced at Chrysler manufacturing sites," the companies said.
Under the terms of the deal, Fiat would make available its distribution network in key growth markets. "Substantial cost savings opportunities" would be available to the alliance, the companies said.
Optimize global supplier base
The carmakers said a tie-up would allow them to take advantage of each other's distribution networks. They also said there would be opportunities "to optimize fully their respective manufacturing footprint and global supplier base."
Fiat Group CEO Sergio Marchionne said the alliance "confirms Fiat and Chrysler commitment and determination to continue to play a significant role" in the global auto industry.
That is consistent with Marchionne's view that the current economic crisis will reduce the number of global automakers.
In an interview published last month in Automotive News Europe, Marchionne said that within two years there could be only six global automakers.
"The only way for companies to survive is if they make more than 5.5 million cars per year," Marchionne told the publication, an affiliate of Automotive News.
In 2007, the most recent year for which global data are available, the two companies produced a combined 5,386,073 vehicles worldwide, which would have ranked them fifth globally. Fiat Auto produced 2,813,870 vehicles, and Chrysler produced 2,572,203.
Chrysler CEO Bob Nardelli says the alliance "creates the potential for a powerful, new global competitor." He said in a statement that Chrysler will benefit from "access to products that complement our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing."
Although Chrysler has expanded global sales in recent years, its limited presence outside the U.S. has been a longstanding weakness -- one that the acquisition by DaimlerChrysler, which unraveled in 2007, was meant to solve.
Nardelli also said the partnership would help solidify the future of Chrysler, which has received a $4 billion federal bailout loan, as well as a $1.5 billion federal loan to Chrysler Financial.
The Fiat alliance would "provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs," Nardelli said.
Ron Gettelfinger, president of the UAW, said: "This is great news for the UAW Chrysler team, and we look forward to supporting and working with them to ensure Chrysler's long-term viability."
A Daimler spokesman declined to comment on prospects for a combination of Fiat and Chrysler other than to say: "We welcome any initiative that serves to stabilize the situation at Chrysler and preserve jobs at the company."
Reuters contributed to this report
PRESS RELEASE: Fiat Group, Chrysler and Cerberus Announce Plans for a Global Strategic Alliance
Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.
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.
The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler's long term viability plan. Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury.
As a consideration for Fiat Group's contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler's current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.
"This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved," the CEO of Fiat Group, Sergio Marchionne said.
"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "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. The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."
"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability," said Ron Gettelfinger, President United Auto Workers (UAW).
"We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs," said General Holiefield, Vice President, United Auto Workers (UAW).
Merger facts
Italy's Fiat, which needs a partner to survive the auto crisis, has agreed to take a 35 percent stake in Chrysler LLC. Here are some key statistics about the two groups:
FIAT
? Key car brands are Fiat, Lancia and Alfa Romeo.
? Also owns luxury sports car makers Ferrari and Maserati.
? Has a market capitalization of about $7.5 billion.
? Trading profit for the entire group including Iveco trucks and CNH tractors was 802 million euros ($1.04 billion) in the third quarter on sales of 14.3 billion euros, up from 13.9 billion a year earlier.
? Main markets are Europe and Brazil. Nearly all of the profit for Fiat Auto comes from Brazil.
? Founded in 1899 and steered from 1902 by Giovanni Agnelli whose grandson Gianni, chairman from 1966, was a legend of Italy's corporate scene, known as much for his society lifestyle as his business acumen.
? Has struck a series of alliances with other manufacturers, including India's Tata and China's Chery.
? In 2000, in the midst of a debt crisis, Fiat struck a deal with General Motors in which the U.S. car maker took a stake. The agreement was dissolved in 2005.
? Current CEO Sergio Marchionne took over in 2004 and put in place a plan to turn the car maker around which was successful, but the company has suffered like others in the current global crisis.
CHRYSLER
? Founded in 1925.
? Best-known models include Dodge, Plymouth and Jeep.
? Bought by Germany's Daimler in 1998 in a $36 billion deal.
? Daimler sold 80.1 percent of Chrysler in 2007 to Cerberus Capital Management LP for $7.4 billion.
? Daimler retains a 19.9 percent stake which it said on Tuesday it still wanted to sell. It has been in talks with Cerberus about the stake.
? In October, Chrysler held merger talks with GM.
? Chrysler has taken $4 billion from the U.S. government as a loan to help it cope with the current global crisis and has also received $1.5 billion for its finance arm.
Source: Reuters
I think I might have to eat crow about what I said earlier.
However, I'd guess in 10 years that Fiat will try and dump Chrysler, just like Renault did with AMC. Will there be a buyer in 10 years?
Quote from: 93JC on January 20, 2009, 04:30:22 PM
True, I know what you're saying. The point I'm trying to make is that Chrysler has for all intents and purposes been operationally taken over by Fiat. Watch for Nardelli and crew to get the boot within weeks. Production of all Chrysler cars will end within the next five to ten years. All financial investment in Chrysler engineering will cease ASAP.
Fiat buying Chrysler didn't delay the inevitable so much as it IS the inevitable: being bought out and incrementally phased out. The only things Fiat stands to gain are:
- manufacturing capacity
- dealer network
- engineering odds and ends
That's it. Fiat didn't 'save' Chrysler today: Fiat threw Chrysler into the coffin. Over the course of the next few years Fiat will nail it shut. Fiat isn't Chrysler's saviour: Fiat is the angel of death.
Fiat won't kill Chrysler. It will replace Chrysler's passenger with Fiats, but that's no great loss. And Fiat probably keep the popular Chryslers that they don't have an obviously better alternative to, like the SUVs and vans, and maybe even the LXs.
Thats true.. Italians love Jeep Grand Cherokees
Fack!
http://online.wsj.com/article/SB123245224622497573.html?mod=djemalertNEWS
It will be an interesting month
Quote from: ifcar on January 20, 2009, 07:02:17 PM
Fiat won't kill Chrysler. It will replace Chrysler's passenger with Fiats, but that's no great loss. And Fiat probably keep the popular Chryslers that they don't have an obviously better alternative to, like the SUVs and vans, and maybe even the LXs.
Unless Chrysler drags Fiat into the quicksand with them.
Quote from: Tave on January 21, 2009, 09:59:10 AM
Unless Chrysler drags Fiat into the quicksand with them.
Fiat already kinda sorta dragged GM down to the tune of $1 billion.
I don't think they will reciprocate the mistake.
Chrysler is lining itself up nicely as a do-all company for Chery, Nissan, Volkswagen, and now Fiat.
Quote from: eightballsidepocket on January 20, 2009, 02:27:34 PM
Actually the Fiat-Chrysler deal sounds like it's a "done" deal.
That really puts Chrysler in a much healthier position than GM or Ford IMO. ;)
It's contingent on getting a government "loan", which Ford doesn't need. Unless Fiat wants to keep a couple Chrysler icons around (like the Viper or the big sedans), I don't see this as leaving Chrysler healthy, but more like turning it into what Fiat never had: a manufacturing base here in the US.
Quote from: ChrisV on January 21, 2009, 11:17:20 AM
It's contingent on getting a government "loan", which Ford doesn't need. Unless Fiat wants to keep a couple Chrysler icons around (like the Viper or the big sedans), I don't see this as leaving Chrysler healthy, but more like turning it into what Fiat never had: a manufacturing base here in the US.
That plus an established dealer network and Jeep. What else would Chrysler have that Fiat wants?
The Ram is a big cash cow.
Quote from: Byteme on January 21, 2009, 01:59:40 PM
That plus an established dealer network and Jeep. What else would Chrysler have that Fiat wants?
The vans. I understand even Europeans buy those.
Let's look at what works at Chrysler by brand, enthusiast-wise or otherwise:
Dodge:
-Ram
-Dakota
-Caravan
-Charger
-Challenger
-Sprinter*
-Viper
Chrysler
-300C
-PT Cruiser
-Sebring convertible
-Town & Country
Plymouth:
Jeep:
-Grand Cherokee
-Wrangler
-Patriot
They have a good foundation. They just need some direction.
The Charger is heavily fleet and the Dakota doesn't sell at all, and both would need updates very soon. I wouldn't keep those on the list.
Also, the Sebring would need to be eliminated for Chrysler to claim it had upgraded its product line. The current Sebring convertible isn't a strong seller anyway.
Saw a Dakota today and realized it would be a very plain truck except that it was ugly from the rear..
Yes, the "Chrysler Caravan" sells pretty ok overseas.
The US government buys a lot of Caravan/ T&C's too.
U.S. Senator speaks out on Chrysler-Fiat alliance; seeks immediate payback if Fiat controls
Chrysler?s recently announced alliance with Fiat should give the ailing automaker a better shot at survival, but it could also put an end to its federal aid. Reports surfaced earlier this week that some on Capitol Hill were getting wary of the alliance, and now one U.S. Senator has openly spoken out about the pact.
In a letter to President Obama, Senator Robert Menendez of New Jersey said that the U.S. taxpayers should not be responsible for the financial wellbeing of a foreign-backed automaker. Menendez is also a member of the Senate Banking Committee.
?As a potential partnership between Chrysler and Fiat moves forward, I am asking you to address the potentiality of foreign control and require the immediate payback of the loans already dispersed should such a scenario present itself,? Menendez? letter said.
Fiat?s tentative deal with Chrysler will see the Italian automaker taking a 35 percent stake in the Cerberus-owned Chrysler, but Fiat could end up with a 55 percent stake within a year.
Chrysler has already received $5.5 billion in federal aid, and is seeking another $3 billion. If Congress finds the Chrysler-Fiat alliance goes against the terms of its bailout package, it could force Chrysler to immediate payback the loans.
Quote from: HEMI666 on January 23, 2009, 11:53:13 AM
U.S. Senator speaks out on Chrysler-Fiat alliance; seeks immediate payback if Fiat controls
Chrysler?s recently announced alliance with Fiat should give the ailing automaker a better shot at survival, but it could also put an end to its federal aid. Reports surfaced earlier this week that some on Capitol Hill were getting wary of the alliance, and now one U.S. Senator has openly spoken out about the pact.
In a letter to President Obama, Senator Robert Menendez of New Jersey said that the U.S. taxpayers should not be responsible for the financial wellbeing of a foreign-backed automaker. Menendez is also a member of the Senate Banking Committee.
?As a potential partnership between Chrysler and Fiat moves forward, I am asking you to address the potentiality of foreign control and require the immediate payback of the loans already dispersed should such a scenario present itself,? Menendez? letter said.
Fiat?s tentative deal with Chrysler will see the Italian automaker taking a 35 percent stake in the Cerberus-owned Chrysler, but Fiat could end up with a 55 percent stake within a year.
Chrysler has already received $5.5 billion in federal aid, and is seeking another $3 billion. If Congress finds the Chrysler-Fiat alliance goes against the terms of its bailout package, it could force Chrysler to immediate payback the loans.
If they do something against the terms of the bailout, I can agree with making them pay it back. But since no money was transferred in the deal, the deal itself should not require a pay back.
Fiat obviously needs US factories, aside from that they might be able to use the new Chrysler Phoenix V6, which is rumored to be quite good, for the Alfas. Fiat could supply Chrysler with its small gasoline and diesel engines. Fiat could also pull out of the Eurovan alliance (Citro?n C8, Peugeot 807, Lancia Phedra, and Fiat Ulysse) and base it's vans on the Voyager instead.