Chrysler has finally reached a deal with its unions in the United States and Canada that could allow the ailing automaker to finally ink a strategic alliance with Italy’s Fiat, but a new report indicates Fiat could be interested in a Chrysler tie-up even if the U.S.’ third largest automaker is forced into bankruptcy.
Sources close to the situation revealed to Automotive News that Fiat would be interested in a Chrysler alliance even if the Michigan automaker is forced into bankruptcy. Sources indicated Fiat would continue to work with the U.S. Treasury Department to get a deal finalized.
The Obama administration has given Chrysler until April 1 to hammer out a deal with Fiat or face possible bankruptcy. However, President Obama has indicated Chrysler’s failure to reach an agreement with Fiat would result in Chapter 7 liquidation, not Chapter 11 protection. It remains unclear if Fiat is preparing for the former or the latter.
Chrysler is currently living off government loans and stands to secure another $6 billion in federal aid by inking an alliance with Fiat. Chrysler’s recent deals with the UAW and CAW were viewed as the last major hurdles in that alliance, with only further lender concessions standing in the way.
04/27, 2:54 PM
posted by:
JakeK66
Fiat’s deal is going to happen before Ch. 7 and that’s a gaurantee.
04/27, 3:02 PM
posted by:
johnnycanuck
Yup. And while we’re at it let’s just squash all that nonsense about selling the Viper.
04/27, 3:03 PM
posted by:
mayer_ray_nagin
…….. “The Obama administration has given Chrysler until April 1 to hammer out a deal
…….. with Fiat or face possible bankruptcy.”
wasn’t April 1 a few weeks ago?
04/27, 3:04 PM
posted by:
chryslercurse
INSIDE SOURCES SAY ITS A DEAL !! UPDATING COMPUTERS TO ACCEPT NEW MOPAR PART NUMBERS WITH FIAT’S
04/27, 3:50 PM
posted by:
Borat
Johnny, if FIAT will own ChryCo, nobody will be selling Viper. You can get Maserati or Ferrari if you so inclined. I don’t think it is a bad choice.
04/27, 4:06 PM
posted by:
CarCzarCdn
Can you get a Maseratti or Ferrari for $100K? For the money a Viper is still a stand out in performance.
04/27, 4:18 PM
posted by:
idrinorbarsaku
that makes sense, a dumb company buying another dumb company!
04/27, 9:56 PM
posted by:
Veda
“The Obama administration has given Chrysler until April 1 to hammer out a deal with Fiat or face possible bankruptcy.”
April 1st? So it’s confirmed bankruptcy eh? LOL