Chrysler now in talks with Fiat

[RB TexLa]

With Chrysler talking with others about mergers and not getting any deals I wonder if the companies are waiting for Ford and GM to come calling.



Fiat and Chrysler in partnership talks: report
MILAN (Reuters) – Fiat is talking with Chrysler LLC to form a strategic partnership that could lead to the Italian car maker taking a stake in its U.S. peer, an industry publication said, citing people familiar with the matter.

Fiat shares were trading 5.52 percent lower at 4.4575 euros. They had been trading below 6 percent before the news.

Fiat could give Chrysler access to platforms, engines and transmissions to help the U.S. car maker overcome its problems, Automotive News Europe said on Monday.

Fiat was not immediately available for comment.

Fiat Chief Executive Sergio Marchionne told an industry publication in December that Fiat needed a partner to survive the crisis.

Apart from Ferrari and Maserati, Fiat does not sell cars in the United States.

Before the crisis hit the car industry, Fiat had been looking for ways to enter the United States and had talked to U.S. automakers about the possibility of using some of their production lines.



http://news.yahoo.com/s/nm/20090119/bs_nm/us_chrysler_fiat_3

[Cessna Invesco Palin]

1. Don't laugh.

Fiat has been building some great cars lately. And the new Alfa Romeo 159 is fantastic.

[RB TexLa]

2. I wasn't laughing.

[bluecollarcharlie]

3. Take this with a big fat grain of salt. Of rock salt.

The last time Reuters had anything to say about Chrysler, they claim that the company was being broken up and the Jeep division was sold. Didn't happen.

[RB TexLa]

4. I think the companies they are talking with are more interested in buying or merging with Ford or

GM. I think most of their talks with Chrysler are more about setting a price basis for the one of the other two.

[blue_onyx]

5. Something will probably happen with Chrysler

before the end of the year. I don't think Cerberus ever intended to do what's in the best interest of Chrysler...they are doing what will make the main company the most money. If that requires breaking Chrysler into pieces, then they'll do it. Hopefully a merger that leaves Chrysler intact will happen rather than breaking the company apart.