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Marchionne: We can help Chrysler

02/04/2009, 9:43 AM

By Andrew Ganz

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.

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02/04, 10:13 AM

posted by:

howsmydriving

Bringing Fiat to America is good news for auto mechanics.

02/04, 10:21 AM

posted by:

netguru2000

Chrysler has had exciting looking cars, especially their concepts. I can’t say I was happy with what Germany did to Chrysler, it ripped the sexy potential out of what the company had going. Fiat has been known for it’s ability to create good looking vehicles. Perhaps they’ll be a little more adventurous; stop creating designs by committees. With a shared platform it could quickly catapult Chrysler to global competitiveness and give fiat an in to the American market. I rather like the alfa romeo 149, I’d like to see more small car platforms with style like that.

02/04, 10:21 AM

posted by:

idrinorbarsaku

don’t include me in this “we” statement. I dont want a single of my pennies going to the, let alone fiat

02/04, 10:24 AM

posted by:

johnnycanuck

Whatever Mr. Marchionne, just get on with it while there’s still something left to form an alliance with.

02/04, 10:47 AM

posted by:

idrinorbarsaku

fiat is also known for creating crap-like quality cars!
the only thing that might be good for fiat is if they bring them to the US, and charge only a couple of grand for them.

02/04, 11:03 AM

posted by:

The Stig

On track to profitability by the end of March? Of what year? Those expectations are unrealistic given the market and given that Chrysler still has not learned the fundamentals of producing a decent quality vehicle.

Later, Chrysler will take out an ad in the Italian newspapers with “va funculo” front and center.

02/04, 11:04 AM

posted by:

JakeK66

Fix It Again Tony!

02/04, 11:58 AM

posted by:

Borat

Senate. congress and administration can reject the deal and will never see 4 bn back and either have to invest more or forget about those few jobs at Chrysler and 4 bn. Basically, 4 bn are gone never to be seen again. If FIAT will buy 35% of Chrysler, people may still work, but 4 bn is gone. What the alternative?

02/04, 12:02 PM

posted by:

ricky_b

I still think this could be a good thing for both. Let’s face it. Chyrsler is not going to survive on their own with their outdated technology. Their 4 & 6 cylinders are on the low end for out put and on the low end for fuel economy. The V8s (esp Hemis) have the power to compete but that’s a limited market when considering the fuel economy. Something is better than nothing.

I do agree that some of their concepts in the last few years have been some of the best ever shown. They just need the right management, right powertrains and right platforms to get the product out. Tall order.

02/04, 12:21 PM

posted by:

yarddog82abn

I hope this dose go threw, so that the Viper can keep it’s Dodge badged…

02/04, 12:59 PM

posted by:

Borat

yarddog82abn, Viper is probably not going to happen (if anyone is really inquiring about it). FIAT has Maserati and Ferrari. What Viper going to do in this company? Compete against higher profit cars?

02/04, 5:02 PM

posted by:

anti-believer

Viper won’t exist anymore if Chrysler can’t find a buyer.

Anyway… FIAT and Chrysler isn’t a good match. Chrysler can’t become profitable by March!

02/04, 9:23 PM

posted by:

Get Real

“We can help them”

…..by going into bankruptcy faster together than by themselves.

….by offering crappier cars so Chrysler actually looks good.

…..by having people relive the 50’s and 60’s with the best of Fiat quality.

…..by having beautiful Italian models stand next to their cars so nobody will notice the cars.

……by importing great Chrysler vehicles into Italy.

……by bringing the expert UAW workers into Italy to show us how to build great cars.

02/04, 10:04 PM

posted by:

RTT10

mmm fiats have terrible electrical systems, ehhh Chrysler just needs to make Better cars and theyll sell, so do GM and Ford but their ignorancy is beyond measure

02/05, 4:16 AM

posted by:

silviumc

FIAT hasn’t turned profitable as of late years for nothing. They now make a range of beautiful and reliable cars with very good engines. Their Multijet Diesel engines and T-Jet Petrol are very efficient. The Multijet engine has been put in millions of cars. It even goes in other brands like Opel Corsa.

Take a look at fiatbravo.com I believe that cars looks gorgeous.

02/05, 6:07 PM

posted by:

hummah

Hey Serge, why don’t you Chrysler them by fitting them for a pair of cement shoes?

02/05, 7:52 PM

posted by:

Pazzo Canguri

Some of you idiots in here saying Fix it agin tony, and fiat make crap cars, WHEN WAS THE LAST TIME YOU OWNED A FIAT IN AMERICA????? ha…i cant hear you….NOT for a frikkne long time as fiat has not beeeeen in america for many many years, and back then the were crap in many parts of the world….but today standard you must be kiding saying fiat crap quality…
here is a good company..WHO KNOW HOW TO MAKE GOOD DECENT CARS AND MAKE MONEY FOR THE COUNTRY…here they are offering to help and become apart of a car company going down the drain and all you can say is how crap fiat is….

get your head out of your a holes and thank god that thier is a company willing to put americans back into jobs….

02/06, 7:38 AM

posted by:

KuroSyn

I’m with Pazzo Canguri, what do you people know of Fiat as it is TODAY?! – NOTHING! (unless you are living in countries that have a Fiat Market for ex. here in Europe)

Fiat has long since obtained here quality cars that actually look good! We’re talking Italian love here, Italian touch, Italian mind. They didn’t come off well, but with time they quickly and successfully turned losses into profits, bad cars into good cars, and from lack of consumer respect to consumer respect. There isn’t anyone here in Europe that know about cars that point fingers at Fiat and say “I’d never own one” or “That’s a sh!t car”, sorry guys, check out the cars of today by Fiat, drive them, and you’ll go on about how great they are for the value.

Fiat has a huge reputation of how they turned profitable from losses, what about the Big 3? They went from profitable to losses, that’s the wrong way to go… it’s like driving down the wrong side of the road! So who do YOU think should be helping who?

 
 
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