Chrysler CEO Bob Nardelli said in an email to employees that the automaker is capable of standing alone if the United States Treasury doesn’t approve the proposed tie-up with Italian automaker Fiat. The no-cash Chrysler-Fiat deal would see the Italian automaker acquiring 35 percent of the struggling Michigan automaker.
“We were asked by the task force whether Chrysler is viable without a global alliance partner. Our answer is absolutely yes (and I am sure you will agree with me), even with a conservative forecast of U.S. auto industry sales trends,” Nardelli said in the email, which was distributed to employees.
“During the dialogue, and in the additional data we have supplied in response to their requests, we have continued to emphasize that Chrysler is a viable business on a stand-alone basis and our future is further enhanced through the proposed global alliance with Fiat.”
The Treasury Department has the ability to veto the Chrysler-Fiat alliance under the terms of the $4 billion low-interest loan Chrysler received from the federal government earlier this year.
Nardelli confirmed that the two automakers will wrap up their proposed deal by the end of March in order to meet the Treasury loan deadline.
Chrysler is “continuing to work collectively and determinedly with all constituents to successfully conclude negotiations by March 31, the deadline specified in our U.S. Treasury loan agreement,” Nardelli said.
“The cash value of Fiat’s contribution to be between $8 and $10 billion considering the cost to develop these vehicles, platforms and powertrains from scratch. This is equal to or greater than the total amount of loans we have requested from the U.S. government.”
