In the headlines of Automotive News today is Fiat may get up to 35% of Chrysler. According to people familiar with the matter in Europe and Detroit, Fiat could give Chrysler access to its mini, small and mid-sized car platforms, engines and transmissions. This would allow Chrysler to quickly build a new range of front-wheel-drive, low-emission vehicles.
If the deal is completed, Fiat would get a 30-35 percent stake in Chrysler in exchange for Fiat's platform, engines and transmission technology, sources told Automotive News Europe. Fiat would get options to acquire up to 55 percent of the automaker over time, The Wall Street Journal reported.
The partnership seems like a smart idea for Fiat, they will have access to Chrysler facilities and distribution centers. My concern about the partnership, how much of the bail out money will be used to form this partnership? I also wonder how much access Chrysler will have to their facilities and distribution.
Monday, January 19, 2009
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