Who'd a thunk it? Fiat has acquired a 35% stake in Chrysler and both companies are now in alliance meaning that both companies will have access to each other's ressources, distribution networks and vehicles. I'd hazard a damn good guess that this means that Chrysler will distribute the Fiat 500 under Fiat's own name and hopefully replace the godawful Caliber with something decent like the Bravo then add the Panda to the stable to compete with the Chevy Aveo and upcoming Ford Fiesta. There's also the Fiat Doblo that would very nicely fill the Gen Y market niche that the HHR and Scion Xb are trying to muscle into. In exchange Chrysler could probably export a few cars of it's own into the euro market (mostly Jeeps and maybe the Chrysler 300 and Dodge Challenger) and build cars stateside for Fiat in their factories, I mean it's not like their building much of anything at the moment are they?

What I especially like about this is that Fiat has really nice designers, and since Chrysler lost most of it's good designers during the Daimler era, this would ensure that future Pentastars would at least look nice. Fiat also is fresh from a massive internal restructure that saved the company and that experience could mean the difference between life or death for Chrysler.

Here's the press release:

Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.

The alliance, to be a key element of Chrysler's viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required. Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base.

The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler's long term viability plan. Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury.

As a consideration for Fiat Group's contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler's current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

"This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved," the CEO of Fiat Group, Sergio Marchionne said.

"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability," said Ron Gettelfinger, President United Auto Workers (UAW).

"We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs," said General Holiefield, Vice President, United Auto Workers (UAW).

The Calibre's are selling like hot cakes here in Canada... Doubt they would get rid of them...



My Cav
I give up...
i'm buying a VW those people love trees, so they should love eachother too... "Andy"

I think this is a great deal for both companies. I really hope they bring the new Fiat 500 here. This will also help Fiat import Alfa Romeos by uilizing Chrysler dealer network.

Using the price of a Mini Cooper in the UK vs. that of one in the US (and adjusting prices based on equipment and whatnot because cars in Europe come with much smaller engines than the cars we get here.), I've made a rough guide of how much Fiats would cost in America:

Fiat 500: 13,250$
Fiat Panda: 9,880$
Fiat Bravo: 14,967$
Fiat Doblo: 14,296$
Fiat Panda 100HP: 14,496$

The Fiat 500 looks especially promising since it's got the looks of a Mini for the price of an Aveo. I have little doubt it'll be imported. The Panda would likewise be a good idea, it's a high MPG car that is leaps and bounds ahead of a car like the Aveo in terms of quality and refinement and yet costs only 2000$ more than the base Aveo for the super duper fully equiped Panda while costing nearly 3000$ less than the base Aveo for it's base model. Chrysler needs a car in that class and it seriously fits the bill.

who would have thought?

was there any rumors of this before hand even?




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They'd had some talks, but then again Chrysler has been having "talks" with everyone but my grandmother. So you just sort of tune that news out. They've also talked with Renault and Nissan and GM and some Chinese companies.

They're not completely partners, no more than Mazda and Ford are partners. Basically at this point the deal looks like Chrysler gave Fiat 35% of their stock for some restructuring help and to gain the rights to build the Fiat 500 in the US and sell/maintain them through their network of dealers. Beyond that, it's anyone's guess, but don't kid yourselves, this deal is heavily skewed in Fiat's favor.

Knoxfire wrote:Using the price of a Mini Cooper in the UK vs. that of one in the US (and adjusting prices based on equipment and whatnot because cars in Europe come with much smaller engines than the cars we get here.), I've made a rough guide of how much Fiats would cost in America:

Fiat 500: 13,250$
Fiat Panda: 9,880$
Fiat Bravo: 14,967$
Fiat Doblo: 14,296$
Fiat Panda 100HP: 14,496$

The Fiat 500 looks especially promising since it's got the looks of a Mini for the price of an Aveo. I have little doubt it'll be imported. The Panda would likewise be a good idea, it's a high MPG car that is leaps and bounds ahead of a car like the Aveo in terms of quality and refinement and yet costs only 2000$ more than the base Aveo for the super duper fully equiped Panda while costing nearly 3000$ less than the base Aveo for it's base model. Chrysler needs a car in that class and it seriously fits the bill.

Base Aveo's start at the same price here in Canada.



My Cav
I give up...
i'm buying a VW those people love trees, so they should love eachother too... "Andy"

Knoxfire wrote:They'd had some talks, but then again Chrysler has been having "talks" with everyone but my grandmother. So you just sort of tune that news out. They've also talked with Renault and Nissan and GM and some Chinese companies.

They're not completely partners, no more than Mazda and Ford are partners. Basically at this point the deal looks like Chrysler gave Fiat 35% of their stock for some restructuring help and to gain the rights to build the Fiat 500 in the US and sell/maintain them through their network of dealers. Beyond that, it's anyone's guess, but don't kid yourselves, this deal is heavily skewed in Fiat's favor.

Yeah but Fiat also gets the option to acquire upto 55% over 3 years. So this is interesting.
I would have rather seen them partner with Renault, because of their proven track record with Nissan...But this could be a great team too. I'm interested in seeing what amazing things a Fiat/Chrysler design team will put out on the street. Hopefully this will mean the end of Dodge CARS all having to look like trucks.



"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net

all the cars posted are ugly.

but i guess its good news for chrysler

Should really help Chrysler. They needed this.




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