Fiat May Take 35% Interest in Chrysler

[Mustang2008Z]

Talk about a "Hoot".....Reading the comments posted here has been a "Real Hoot", I have been laughing so much at the comments, made here, about a Fiat/Chrysler merger. "What a Hoot."

Wish it was "Hooters" instead.....lol...Hooters couldn't save Chrysler though.....Nice thought....

Hey, remember when Chrysler owned Mitsubishi? It was a money losing partnership too. Everything that Chrysler management touches is a loser. Now Mitsubishi is doing a little better without Chrysler than with them. Bob Lutz, a GM manager, who was fired by GM when he first went into the car business, went to Chrysler to be an executive there, to design and build such wonderful engines like the one that sludged up so bad that Chrysler and Daimler have had to stop producing the motor, bad design, more money needed to settle lawsuits. Then there is the P.T. Cruiser with the infamous sludger engine...What a hoot!! Lutz makes off with millions in loot and gets rehired by GM, just in time to oversee GM go to it's knees..Another hoot!! Millions for the executives to make lousy decisions, a bone for the hourly workers...Another hoot...

In another forum, I posted that, on the State of California Website, Chrysler was using re-refined motor oil as factory fill just to save money....Another hoot!!!!!!! My opinion.

Re-refined oil, according to the EPA would be a great way to conserve resources, but would have to be subsidized by the government (read taxpayers), like what is done in Europe. European governments subsidize re-refined motor oil production.

Ah yes...Fiat/Chrysler merger of 2 equals...Both government (taxpayer) supported.

 

[StevieC]

I think that previous Chrysler management had a problem and because of that the company is struggling. Being owned now by Cerberus Capital I think we could see a great change. They just have to fix the current situation and lack of brand interest/loyalty...

 

[Nickdfresh]

Originally Posted By: bcossa2001
I don't know who to feel sorrier for--Chrysler or Fiat.

Fix it again tomorrow.


Not anymore. Fiat is ranked in some of the top quality categories in Europe/UK...

I'm definitely interested on the Fiat 500. So many great cars that we're finally gonna have access too in this market within the next two or three years!

 

[Papa Bear]

"So many great cars that we're finally gonna have access too in this market within the next two or three years!"

Hopefully ..... they will probably make the 500 only available in North America with a 140hp 2.0L automatic (cause that's what we WANT).

 

[StevieC]

I still want a FIAT ABARTHA 500

Very very sexy...

 

[Nickdfresh]

Originally Posted By: Papa Bear
"So many great cars that we're finally gonna have access too in this market within the next two or three years!"

Hopefully ..... they will probably make the 500 only available in North America with a 140hp 2.0L automatic (cause that's what we WANT).

I hope they put a HEMI in it!

Originally Posted By: StevieC
I still want a FIAT ABARTHA 500

Very very sexy...

It is a very cool car. I know they're saying it "only has" 135HP, but I bet even the regular 100 HP engine drives that thing fine. I have a friend that was interested in a Mini Cooper for either him or his wife. He went to the local BMW-Mini outlet and they handed him a clipboard with a long waiting list on it and said he'll be lucky to get it for sticker.

With the other options coming like the Ford Fiesta/Verve/Mazda2, that Nissan, and now the Fiat, I think he's gonna wait a year or two. Especially since none of the above require 93-octane for their regular engines..

 

[StevieC]

I bet you they will give SCION and HONDA a run for their money with all the rice-boys...

I wish I could buy a SCION up here... I like the Box looking small SUV one... That's

too IMO.

This car would make my dad happy, both because it would be supporting his Chrysler pension and because it's Italian like him!

hehehehe

 

[Mustang2008Z]

Here is the link to the motor, designed by the illustrious Bob Lutz, GM manager, while he was in charge of the automotive and engine design teams while with Chrysler:

http://www.autosafety.org/chrysler-doesnt-budge-sludge

Of course it is dated 2004, but it proves my point in my prior posting. "MISMANAGEMENT" is the key word here, by "experienced people" like Lutz. No wonder Chrysler and GM are on their knees. With managers like Lutz and Wagoner who needs inexperienced people to run a company into the ground, and ask for taxpayer help?

 

[OVERKILL]

Originally Posted By: StevieC
I think that previous Chrysler management had a problem and because of that the company is struggling. Being owned now by Cerberus Capital I think we could see a great change. They just have to fix the current situation and lack of brand interest/loyalty...


Cerberus has no interest in making Chrysler successful. They just want to make a profit off of it via a sale.

 

[Westerly]

Originally Posted By: StevieC
I still want a FIAT ABARTHA 500

Very very sexy...



When Tpo Gear tested it they essentially said it was like a modern day MKI Rabbit/Golf GTI. That is a good thing. A REALLY REALLY GOOD thing!!!!!!!!!

I used to own a MKI Rabbit GTI from brand new and the thing was the best car I EVER owned. Practical, very reasonable (dare I say inexpensive?) purchase price, amazing dynamic balance, great driver controls, safe, and inexpensive to service.

There IS a market for a reasonably priced warm hatch only the Fit comes close and my guess is the 500 would destroy it in handling terms.



If the price is right and Chrysler and FIAT support it right ,they could very likely have a huge huge hit on their hands. Could you say a K -car like savior? I think so.

 

[StevieC]

My partner has a 89 VW Cabriolet with a 1.8 Litre and it's a blast to drive...

 

[Mustang2008Z]

Per Edmunds.com Inside Line:

Inside Line says: A Fiat-Chrysler marriage was a bad idea 20 years ago and, from our vantage point, it still looks like a bad idea. — Paul Lienert, Correspondent

 

[rszappa1]

I see in todays Detriot free Press that Chryler wants another 3 million...Folks this bail out or what ever you want to call it is not working........

 

[Samilcar]

They're actually asking for a thousand times more than that. ($3 Billion)

All those zeros make my head spin.

 

[rszappa1]

Sorry what is a few bucks....Just remember that CHANGE is coming...actually what he means is that is all that will be left in your pockets....change...all of the dollars will go to failed bail outs.....

 

[Mustang2008Z]

Please read this article that was published, apparently, Fiat got 35% of Chrysler for free.....

Fiat acquires 35 percent stake in Chrysler
Richard C. Gross THE WASHINGTON TIMES
Tuesday, January 20, 2009

Buzz up!Italian automaker Fiat, a leader in fuel-efficient small cars with a global reach, acquired a 35 percent stake in severely troubled Chrysler, both companies announced Tuesday, in a nonbinding deal that could make the American car builder greener and help give it a new lease on life.

Fiat, based in Turin, Italy, will not have to make a cash investment in Chrysler or commit to fund the American firm in the future, the companies said in a joint statement.

Fiat "got a bargain," Michelle Krebs, editor of Edmunds' AutoObserver.com, told The Washington Times. The agreement means that Chrysler virtually gave away a third of its company for free, underscoring its plight in a worsening recession.

The pact would give Chrysler, headquartered in Auburn Hills, Mich., access to Fiat's platforms, powertrains and components so it could produce more fuel-efficient compact and midsize cars in its own factories and would allow Fiat to re-enter the U.S. market for the first time since 1983, when it left because of Americans' concerns about quality.

Fiat vehicles presumably would be distributed at Chrysler dealers.

The Italian auto giant, which has explored returning to the United States and is known for its diesel engine technology, produces Fiats, Lancias and Alfa Romeos. Chief among them is the world-renowned Fiat 500 compact car.

The Alfa Romeo left the U.S. market in 1994.

Chrysler received a $4 billion loan from the U.S. Treasury last month to prevent it from going bankrupt. Its lending arm, Chrysler Financial, got a federal infusion of $1.5 billion Friday.

"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 [sic] our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," Bob Nardelli, chairman and CEO of Chrysler LLC, said in the statement.

"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," Ron Gettelfinger, president of the United Auto Workers, said in the same statement.

The deal did not come as "a total surprise" because "it's been very clear that Fiat wanted to be back in the U.S. market," Ms. Krebs said. The first signs came during the summer, she said, when Fiat examined a Chrysler engine plant in Michigan.

"Is this going to save Chrysler"? Ms. Krebs said rhetorically. "I don't know yet. Whoever has the most cash and can hold on until a turnaround [in the economy] will be here to stay. The big issue is to get the consumer buying again."

"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," Sergio Marchionne, the CEO of Fiat Group, said in the statement.

"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 benefiting from additional cost synergies," Mr. Marchionne said.

The deal emerged months after Chrysler's merger talks with ailing General Motors Corp. fell apart. Chrysler also had an agreement with Nissan-Renault. Renault, the French car builder, is a major competitor with Fiat in Europe.

"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," Mr. Nardelli said.

The agreement hinted that Fiat eventually could expand its stake in Chrysler.

"As a consideration of Fiat Group's contribution to the alliance of strategic assets . . . Fiat would receive an initial 35 percent equity interest in Chrysler," the joint statement said. "The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

 

[rszappa1]

Fix It Again Tony........................

 

[BGK]

Fiat makes decent product now that is safe, fun and reliable. What they sold in the US in the past has nothing to do with what they make now. To maintain their European flair and image, they should probably sell their product under the Fiat name. Remember, we are getting Fiat product here now under the Ferrari, Maserati and eventually Alfa Romeo brands.

 

[rszappa1]

I think that chrysler just need to die already....enough life support....

 

[LTVibe]

From today's news:

Fiat CEO: UAW Concessions Or No Alliance

Quote:
Fiat Group SpA CEO Sergio Marchionne is ready to walk away from a proposed alliance with beleaguered Chrysler LLC if the automaker's union workers do not agree to concessions that would put their pay on the same scale as workers at U.S. plants owned by foreign car companies.

In a story posted today on The Toronto Globe and Mail's Web site, Marchionne said not getting concessions from the UAW and CAW are a breaking point for talks.


And if Marchionne can pull this off, look for GM to seek similar concessions.