Chrysler-Fiat Deal Hinges on Bailout Demands

[ProSense]

Chrysler-Fiat Deal Hinges on Bailout Demands

By Ed Brayton

A proposed deal that would give Fiat a 35 percent stake in Chrysler in exchange for small car technology will depend on what new demands are placed on the struggling American automaker when the Obama administration’s auto task force announces its future bailout strategy on Monday. Automotive News reports:

The boards of Chrysler LLC and Fiat SpA have given executives approval to complete an alliance deal that hinges on the terms for additional aid for the Detroit automaker, according to people with knowledge of the discussions.

The development comes before U.S. President Barack Obama’s expected announcement Monday on rescue funds for Chrysler and General Motors and more than two months after teams from Chrysler and Fiat began reviewing the proposed tie-up and developing a business plan for their combined operations.

Final terms of any deal will depend on what terms the U.S. autos task force headed by former investment banker Steve Rattner imposes on Chrysler as a condition for providing additional funding, according to the sources, who asked not to be identified because of the confidential nature of the talks.

Fiat CEO Sergio Marchionne has met with the auto task force twice and signaled his willingness to adjust the terms of the deal to satisfy the administration’s demands. The UAW supports the Fiat merger, which could save thousands of American jobs.

[old mark]

1. I have owned both Chryslers and Fiats, and never had one

that didn't continually need work.
A FIAT/Chrysler would be a double dog....


mark

[tridim]

3. Fiat today shares very little with the Fiat of the past

Even though Fiat has made some great cars in the past, obviously they've made some crap too.

Modern Fiats are great cars. If I had any money I'd consider buying one right away.

[old mark]

4. One of the 3 I owned was a late '70's 124 Spider convertable,

with a Weber 2 barrel and a 5 speed.
It was a rocket, but cost several hundred bucks for a tune up and body work was as expensive as gold.

(Had it up to 135 once :evilgrin: )

mark

[tridim]

5. I just sold my 78 spider to my brother

I loved that car and am thankful it's still in the family. Too bad it's now 500 miles away. :(

[old mark]

6. I don't see many around any more, but it was a hell of a car.

My ex wife decided to get very drunk once while she was "borrowing" it, and it became junk somehow.....

mark

[Wapsie B]

2. My proposed demands:

Resignation of not only the CEO but the entire senior managment team. Removal of all members of the board of directors. Start with a blank slate. Purge them all.