LTSmash
01-22-2009, 02:17 AM
Fiat, Chrysler Discussing a Partnership, Automotive News Says
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By Hugo Miller and Victoria Richards
Jan. 19 (Bloomberg) -- Fiat SpA is in talks with Chrysler LLC on a partnership that may include the Italian manufacturer taking a stake in the U.S. automaker, Automotive News Europe reported, citing unidentified people familiar with the matter.
Auburn Hills, Michigan-based Chrysler would tap Fiat’s experience building small and medium-sized cars to accelerate its own plans to bring out new front-wheel drive vehicles offering lower emissions, while Fiat may use Chrysler’s North American production and distribution network to introduce the Alfa Romeo brand and Fiat 500 minicar in the U.S., the newspaper reported.
Chrysler, which is 80.1 percent owned by Cerberus Capital Management LLP, is working to present a survival plan before a March 31 deadline after receiving $4 billion in U.S. government loans to keep the automaker operating. It’s unclear whether Turin -based Fiat would be paid or be given equity in Chrysler in exchange for sharing its technology, Automotive News said.
Fiat didn’t have an immediate comment, an official at the Italian company said, speaking on condition he not be identified. Lori McTavish and Shawn Morgan, spokeswomen for Chrysler, didn’t immediately return calls seeking comment.
To contact the reporter on this story: Hugo Miller in Toronto on [email protected]; Victoria Richards at [email protected]
Last Updated: January 19, 2009 13:23 EST
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Email | Print | A A A
By Hugo Miller and Victoria Richards
Jan. 19 (Bloomberg) -- Fiat SpA is in talks with Chrysler LLC on a partnership that may include the Italian manufacturer taking a stake in the U.S. automaker, Automotive News Europe reported, citing unidentified people familiar with the matter.
Auburn Hills, Michigan-based Chrysler would tap Fiat’s experience building small and medium-sized cars to accelerate its own plans to bring out new front-wheel drive vehicles offering lower emissions, while Fiat may use Chrysler’s North American production and distribution network to introduce the Alfa Romeo brand and Fiat 500 minicar in the U.S., the newspaper reported.
Chrysler, which is 80.1 percent owned by Cerberus Capital Management LLP, is working to present a survival plan before a March 31 deadline after receiving $4 billion in U.S. government loans to keep the automaker operating. It’s unclear whether Turin -based Fiat would be paid or be given equity in Chrysler in exchange for sharing its technology, Automotive News said.
Fiat didn’t have an immediate comment, an official at the Italian company said, speaking on condition he not be identified. Lori McTavish and Shawn Morgan, spokeswomen for Chrysler, didn’t immediately return calls seeking comment.
To contact the reporter on this story: Hugo Miller in Toronto on [email protected]; Victoria Richards at [email protected]
Last Updated: January 19, 2009 13:23 EST
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