Though things seem to be progressing positively on the proposed Chrysler -Fiat alliance, the two automakers have to consider the possibility of a deal rejection from the United States Treasury Department. Chrysler’s Vice Chairman and President Jim Press told reporters that the automaker is still considering less-extensive tie-ups with other automakers.
“If it doesn’t work out with Fiat, we still have had other conversations with other potential partners and alliances and those obviously can continue, so we have other alternatives,” Press told reporters yesterday. “It’s a little bit like dating: Nobody knows who we’re dating. We don’t need the paparazzi to follow us around and put pressure on the dates.”
Both Chrysler and Fiat have said that alliances are the way of the future for their continued survival. Chrysler already has two small alliances with Volkswagen and Nissan , though the plan for Fiat to acquire 35 percent of Chrysler is by far the most comprehensive.
A clause in Chrysler’s $4 billion government loan agreement says that the automaker must receive Treasury approval. Some Washington critics have said that the loan was only intended for an American company and that, even though Fiat won’t receive any cash in the alliance, the Italian automaker will benefit as a result of Chrysler’s improved financial situation.
“It will make the government a lot more confident that the repayment is going to occur on schedule,” Press said, speaking of the newfound strength the Michigan automaker would have with the tie-up.
Press also said that the Fiat tie-up would secure American jobs that would be lost of Chrysler wasn’t able to succeed.
“By allowing us to use the capacity of North American plants to build those (Fiat) vehicles and export them, they’re preserving American jobs – a lot of American jobs,” he said.
