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.
01/28, 9:17 AM
posted by:
iluvamcars
The government hates the big three now!
AMERICAN, NOTHING ELSE
01/28, 10:11 AM
posted by:
JakeK66
The governent should let Chrysler do whatever it needs to and allow it to survive. If they don’t Chrysler will fail and they will get NONE of their money back. We would also lose massive amounts of more jobs if we forced them to stay alone, making a huge mistake. It almost sounds like this could help America overall as it would allow factories to reopen and start building again. I don’t trust the current Government though, and like iluvmycars, I agree somewhat there is some hate.
I still think Renault/Nissan want this to fail so they can come in and do the same thing Fiat is doing.
01/28, 10:31 AM
posted by:
johnnycanuck
JakeK66, Borat and I discussed this a little yesterday in regards to Renault/Nissan. Given that the Chrysler/Nissan partnership was formed well before Fiat appeared in the picture it seems unreasonable to assume Nissan was not given first crack at a similar position. As Borat pointed out maybe Nissan just doesn’t have the financial wherewithal, at least when compared to Fiat, to justify such a commitment at this time. One other thing that I’m not sure has been mentioned here is that Fiat will have the option of picking up another 20% stake for the absurdly low sum of 25 million.
You are absolutely right when it comes to the government. The bailout has been about jobs since day one and that is exactly what is being saved with these moves by Chrysler. So what is their problem, or is it more of a case of certain politicians just needing their 15 seconds of cage rattling?
01/28, 10:50 AM
posted by:
moparsalesman
as long as the loan gets paid back who gives a s**t about their partnerships. Here take this life raft but you cannot get out of the water into the boat. wtf? is this crap
01/28, 12:26 PM
posted by:
yarddog82abn
WHAT?…Volkswagen, Nissan, and Fiat……DAMN Chrysler YOU ARE A SLUT!!!…..
01/28, 12:31 PM
posted by:
Borat
Let be all very realistic: none of those loan paybacks will see the light of day. I would be more inclined for ChryCo to find another sugar daddy to pay its bills, instead of us. Whatever spend is spend, perhaps we could be shielded from another round of money waste.
As far as politicians, Johnny is right, they are making noises to collect their own 33 silver coins.
01/28, 5:31 PM
posted by:
Dr.Martens
This is indeed the fall of chrysler