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Nardelli: Meetings with Fiat “positive”

01/27/2009, 10:45 AM

By Andrew Ganz

Chrysler LLC Chairman Robert Nardelli called informal meetings with Fiat CEO Sergio Marchionne “positive” in a letter to the Auburn Hills, Michigan, automaker’s employees. Marchionne had traveled to Auburn Hills from Turin, Italy, to discuss plans for Fiat to acquire a 35 percent stake in Chrysler in exchange for access to Fiat vehicle platforms.

All is “contingent on meeting the viability plan required of us by the U.S. Treasury,” Nardelli said.

Comments from leaders at both Chrysler and Fiat have been optimistic, though firm plans have not been announced. Still, at a dealer’s convention in Detroit, Chrysler hinted at what North American buyers could expect to see come from the alliance – including a handful of Fiat-engineered, Mexican-assembled, Chrysler-badged small cars, as well as genuine Fiat and Alfa Romeo products.

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01/27, 10:58 AM

posted by:

johnnycanuck

“Fiat-engineered, Mexican-assembled, Chrysler-badged small cars”. Wow, the old confidence meter just shot through the roof now didn’t it?

01/27, 10:59 AM

posted by:

shaver

Badges! We dont need no stinking Fiat-engineered, Mexican-assembled, Chrysler-badges!

01/27, 11:03 AM

posted by:

Lariat Luxury Locomotive Liner No.3

Nardelli? The guy is a joke.

01/27, 11:07 AM

posted by:

shaver

Is that a pic of John Grudens angry uncle?

01/27, 11:13 AM

posted by:

NismoSentraKen

===>>LOL johnnycanuck good one

01/27, 11:15 AM

posted by:

mayer_ray_nagin

Why is it no surprise that a guy with the name Nardelli is eager to do business with italians?

01/27, 11:42 AM

posted by:

howsmydriving

How will this impact the development of the Hornet?

01/27, 12:14 PM

posted by:

Zcarsales

Exactly what problem does this merger solve?

01/27, 12:21 PM

posted by:

bolex

Zcarsales, Fiat will own 35% it’s not ‘merger’.

01/27, 12:31 PM

posted by:

yarddog82abn

Why do I fill like eating pizza?

01/27, 12:40 PM

posted by:

miket

This is great for FIAT, who has been in talks with a variety of manufacturers over the last year or so about getting into the US market. Although the timing could be better for them, I think they have more to gain than chrysler at this point….

01/27, 12:59 PM

posted by:

idrinorbarsaku

that pic sure doesn’t seem “positive”!

01/27, 2:07 PM

posted by:

Scarface03

I too wonder if the small-car platform access is really the cure for Chrysler’s ills. But, I’m not too surprised–Chrysler does have a history of making deals that benefit the other guy more than it does them.

And, I think this 35% stock transfer really is just the precursor to an all-out purchase of Chrysler, because a foothold in the U.S. market is EXACTLY what Fiat needs. Alfa Romeo wants to tap into U.S. market, but they’ll need more than a few extra square feet at Ferrari and Maserati dealerships to do it. And once the economy rebounds and OPEC does its typical tinkering, oil prices will spike and everyone will want the little cars that the Continent knows oh so well. Fiat may well find a solid market here to, especially if the set up manufacturing here.

So, Fiat is definitely thinking ahead, and Cerberus probably is too. I’ve never thought Cerberus was in it for the long haul, and when they decide to cut and run, now it’ll be easier. When you’ve already cleaved off a third of your hide, it won’t take much effort to let vultures take the rest.

01/27, 4:37 PM

posted by:

winnipegjets

miket, i have to disagree with you. i think that the timing for fiat’s takeover of stock (remember theyre not paying anything for it) couldnt be at a better time. firstly, theyre not paying anything for this, they just have to hand over some of theyre cars. secondly, chrysler needs this to stay afloat in this economy, because people wont only want to save money on gas when the recession ends and fuel skyrockets again, but theyll want to save gas during the recession in order to try and save money. it is a good move for both parties (as long as u.s. congress allows it)

just a little aside, gas in canada is still $3.20 a gallon, which is better than the +$6.00 a gallon we saw in the summer, but its still high, so we wouldnt mind seeing some of these more fuel efficient cars up here where its -50 degrees outside

01/27, 6:12 PM

posted by:

PassingGear

Scarface03 – You totally nailed it man.. I couldn’t agree more. Chrysler’s basically toast and will be cut up and all the ‘good’ stuff sold off In the near term (say a year or so). A couple of years down the road all that’ll be left of the remaining assets (production facilities) will be used by Fiat and so Alfa to build their own vehicles for the NA market.

01/27, 6:17 PM

posted by:

PassingGear

Forgot to ad. Nardelli is a complete jackball.

01/27, 8:57 PM

posted by:

Gundy

Nobody can predict the future, obviously; not even car makers, and they (sort of) do it for a living. They didn’t see the SHORT spurt of $4+ a gallon gas, and then the dump down to $2 a gallon gas, turning around everyone’s attitudes and buying habits in six short months. There’s no way anyone can know what’ll happen in two years from now. Chrysler, theoretically could, in two years, end up being the most profitable car company of the “big 3″. Theoretically..

01/27, 9:00 PM

posted by:

Get Real

Chrysler is a disease infested ho’. So many partners during the past decades.

Chrysler has not even seen a doctor to cure the disease of poor quality infesting the company.

01/27, 9:35 PM

posted by:

Borat

In this photo Mr. Nardelli looks like he just took one for the team.

01/28, 12:45 AM

posted by:

Impulsive

Every time I think of this guy I think McDonald’s manager.

 
 
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