Sergio Marchionne, the revered chief executive officer of Italian automaker Fiat, said that struggling Michigan automaker Chrysler LLC has few options that would contribute to its long-term viability other than entering into the proposed alliance with his company.
“We can help them,” Marchionne told the Detroit Free Press. “I haven’t seen a lineup of people at the door trying to take us out of this deal.”
Marchionne is in Detroit to meet with Chrysler executives in order to discuss the nonbinding alliance agreement with Chrysler. The biggest hurdle seems to be making Chrysler capable of upholding the terms of the $4 billion federal loan that require Chrysler to be on a track to profitability by the end of March.
“It needs to stand up on its own two legs,” Marchionne said. “If it doesn’t, we won’t play.”
Fiat is seeking to acquire 35 percent of Chrysler, including North American distribution channels, in exchange for giving the Michigan automaker full access to its small car platforms.
Many analysts have agreed that the partnership would reap long-term benefits for both automakers – even despite the current economic downturn. The partnership would depend heavily on Chrysler’s expertise in trucks, SUVs and large cars, as well as Fiat’s experience in producing class-leading small displacement cars.
