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Tough sell: Chrysler attempted to forge partnerships with at least 14 companies, including Toyota

05/01/2009, 5:39 PM

By Drew Johnson

Chrysler finally inked a strategic alliance with Italy’s Fiat on Thursday, but new documents from the company’s Chapter 11 filing reveal the Auburn Hills automaker has been shopping around for an automotive partner for the last two years.

According to The Detroit News, Chrysler has been in search of a strategic partner since 2007, and even tried to sell off several parts of the company. Chrysler reportedly had talks with a number of the world’s top automaker, but focused on Chinese automakers during the last few weeks.

“Chrysler has attempted in recent weeks to sell product lines and other units to a number of Chinese companies, but these efforts too have been unsuccessful,” Chrysler Co-president and Vice Chairman Tom LaSorda said in an affidavit. Chrysler attempted to sell engines, transmission, entire vehicle lines and even U.S. plants to China’s Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co., but to no avail.

In addition to the aforementioned Chinese companies, Chrysler also tried to strike strategic alliances with Nissan, General Motors, Volkswagen, Tata Motors, Magna, GAZ, Hyundai, Honda and Toyota. Chrysler made the most headway with Nissan and GM, but was turned down by the others fairly quickly. Honda turned down Chrysler’s offer in just one day.

The documents also revealed Chrysler first began talks with Fiat back in March of 2008. One of the first topics breached was selling the Fiat 500 in the United States. Chrysler and Fiat estimate their tie-up will save the companies $3.7 billion over the next eight years.

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05/01, 6:00 PM

posted by:

swamp donkey

Looks like no one wants your crap Chrysler.

05/01, 6:04 PM

posted by:

NRG

It just goes to show you how out of touch they are with what people want. The whole management should have been fired 3 yrs ago. How can it take them so long to realize they were making inferior cars that nobody wanted? How many yrs does it take to get it right?

05/01, 6:04 PM

posted by:

A4

ew toyota

05/01, 6:15 PM

posted by:

johnnycanuck

I have this vision of Nardelli going to these meetings wearing lipstick, a blond wig, short skirt, heels and a push-up bra. Ouch. I think it’s best if I stay off the roads this evening.

05/01, 6:36 PM

posted by:

No More Oil For Toyota

cerberus….”we don’t have an exit plan…”

05/01, 6:40 PM

posted by:

orangecones

New Company Slogan: Chrysler….cars so bad even the Chinese don’t want them.

05/01, 7:25 PM

posted by:

tripleonefive

hahaha Look I think its a mistake for a superior japanese company like Toyota to associate with the likes of GM let alone Chrysler

05/01, 7:35 PM

posted by:

idrinorbarsaku

orange, thats funny!

I bet they were excited when they asked VW, and then quickly became pant-pooping shocked when the said, “aghh aghh agh… NO!”

05/01, 7:38 PM

posted by:

jackjimturkey

1115: Your premise is just irredeemably wrong, but your point is valid: Not much for toyota to gain. Why augment dreck you can sell with dreck you can’t sell?

05/01, 8:25 PM

posted by:

Borat

So we, consumers, not suppose to buy Jap and Korean “crap” cars, but our famed captains of automotive industry were selling wholesale to them everything and anything; except nobody was buying. I love those nationalistic slogans!

05/01, 8:40 PM

posted by:

Barry Obama

Wonder how Exfiat and Buyamerican will spin this?

Borat leave Japs out of that comment, they are nothing like chinese or korean underlings.

05/01, 8:46 PM

posted by:

Borat

I was just paraphrasing. I was stationed in Japan and Korea, I know the difference very well.

05/02, 2:28 PM

posted by:

Jon Luc

I’d like to walk into th board office of FIAT,(if I had enough money to get controling shares) & say: “Nardelli, you’re fired!”

05/02, 2:32 PM

posted by:

Jon Luc

Marchionne, you’re also fired.

05/02, 5:33 PM

posted by:

jackjimturkey

Borat:

where were you stationed in Japan?

05/03, 12:02 AM

posted by:

JMBII

How embarrassing.

05/03, 12:05 PM

posted by:

Borat

Yokota, flew over and stayed for short (well sometimes not that short) periods of time.

05/03, 12:07 PM

posted by:

JakeK66

Everyone mark my words – This merger will failk and Nissan Financial should have accepted the proposed Nissan-Renault merger. If the economy didn’t suck so bad middle of last year, we wouldn’t be talkinf about FIat right now, but which Renault models would be in Chrysler dealers by years end.

05/03, 1:06 PM

posted by:

jackjimturkey

Never been to Yokota. But I have been to Tokyo

05/03, 2:12 PM

posted by:

TomF

This is either tragi-pathetic or patheti-tragic. Either way, the American motoring public isn’t exactly mobbing the shipping piers screaming for new Fiats, so this is only going to get worse (and sadder).

05/03, 8:55 PM

posted by:

Borat

Yokota is in burbs of Tokyo. Of course burbs of 10 million city is size of a small size Latin American country or medium size European. I like Tokyo, I prefer European cities, but Tokyo has its charm.

TomF you are right, but FIAT does have what Chrysler doesn’t (efficient car technology) and can get from Chrysler something it does not have: base of operation in US along with some successful products. FIAT is tiny but very unique company. It sells not only cars, but provides technology for competition. Just like Japanese smaller companies do now and most of auto industry was doing in 30’s- 60’s.

05/04, 11:18 AM

posted by:

SoTXFord

Borat, I too was stationed in Japan, but I was down on Kyushu in Sasebo. We’d stop in to Yokosuka for training about once a year. I agree, Tokyo has a vibe to it thats hard to beat elsewhere.

But as for Fiat, I dont know why everyone and the media keep refering to them as having “efficient car tech”. Since when did making tiny cars become “tech”? Its pretty much a given that a small light car has better gas mileage that a heavy large one. Then again, looking at their current line up, I guess it took Chrysler merging with another company to figure that out.

05/04, 4:42 PM

posted by:

jackjimturkey

I was at Misawa.

05/04, 4:45 PM

posted by:

shaver

Everyone knows (except apparently Cerberus) Daimler stripped Chrysler of any value years ago

05/04, 7:04 PM

posted by:

olds307

F— Chrysler. Just for trying so HARD to sell out to the CHINESE!?!?

If anything, Ronald Perelman and AM General should buy out Chrysler. Discontinue the FWD crap they make that no one’s buying, maybe bring back the Magnum, discontinue everything from Jeep except the Wrangler and Grand Cherokee… and maybe bring back the XJ Cherokee.

 
 
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