Fiat bids for Stake in Chrysler

jemdandyJanuary 21, 2009

This week, Fiat will bid for a 35% stake in Chrysler. The deal has to pass muster by federal regulators to become reality. The strange thing is Fiat has no money to do this. They are banking on Chrysler getting some bail-out money from the Federal Government. Fiat believes they know more about running an automotive company than the adventure capital group, Cerberus. Daimler yet owns a significant chunk of Chrysler. They were unable to unload all of it.

So, what are your thoughts on this? The end of Chrysler nameplate (the corporation is already gone) or a new beginning?

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i remember when fiats were sold here, man were they junk ! should be a good fit for chrysler.

    Bookmark   January 21, 2009 at 8:21PM
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FIAT was paid several million dollars by GM a few years ago to ease the pain of their "breakup", so that may be some of the money they plan to use. Wherever they get it from, though, Chrysler needs the money.

Personally, I think it's a good deal for both sides; maybe a little better for FIAT. FIAT gets a ready-made dealer & service network which would cost them years and millions to assemble themselves. They get Jeep, which enjoys some sales success worldwide, and Dodge's minivan and pickup line, which at least positions them like Toyota as a full-line vendor in the U.S. market if they want to play.

Chrysler gets some desirable, competitive small and mid-size cars, something which has escaped them so far. They (well, Cerberus) also get to cut their losses some.

FIAT definitely knows more about running a car company than Cerberus does. FIAT ain't lining up for a bailout from the Italian government. They (like Volkswagen and Renault and Mazda and Hyundai and anyone else who's been selling cars for a couple of decades) make a much better product than people remember from back in the 70s and 80s. And I think if Cerberus could get out from under what they're losing on Chrysler, they would do it in a New York minute.

Face it -- Chrysler has been on a slow donkey ride for a couple of decades now. They seem to hit it out of the park about once a decade (minivan in the 80s, the LH cars in the 90s, and the 300 in this decade), but they cannot sustain the average. And one home run in every 10 at-bats does not keep you in the major leagues.

    Bookmark   January 22, 2009 at 10:34PM
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i hope your right for the sake of the workers, and for the big chry. engine plant they have in my town. but from my experiance with chry. products, they`d have to pay me, to own one of their cars or trucks.

    Bookmark   January 24, 2009 at 7:45PM
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