[toksenveste]

I couldn't find the original thread
On Tuesday, Chrysler and Italy's Fiat confirmed they had reached an agreement on an alliance that would give Fiat a 35% stake in the American company. Fiat would not put any cash into Chrysler but would provide technology and vehicles that Chrysler could build and sell in the U.S.
But the deal becomes binding only if Chrysler gets $3 billion more in financial help from Washington, said the people familiar with the terms of the agreement...While having Fiat as a partner helps Chrysler offer a longer-term vision, it does little to ease its current cash crunch.

All its plants have been shut temporarily since before Christmas, and dealers have been scaling back orders as sales declined steeply in the last few months.

As a result, Chrysler is barely generating any revenue and will likely need more government loans to keep going beyond the first quarter, people familiar with Chrysler's operations said...Chrysler could face tough questions about why taxpayers should put more money into the company when neither its majority owner, Cerberus, nor its new partner, Fiat, are doing the same.

Giving more loans to Chrysler is "somewhat troubling for all of us as U.S. taxpayers, but for Chrysler itself, it may be the best outcome," Sen Bob Corker (R., Tenn.) said Tuesday in a phone interview. He said he is concerned that by investing more money in Chrysler, the government is enabling Cerberus, which is privately held, to be in a better position to offload its stake in the troubled auto maker...Cerberus acquired Chrysler in August 2007, and began talks to extend Chrysler's reach beyond North America.
Chrysler-Fiat Deal Needs U.S. Loans - WSJ.com

[ANCETPYNCTEXT]

Does this mean we'll have better, more energy efficient vehicles?

[liontutuxx]

I wish it was GM instead, so they could call the company Gen-Italia.

[toksenveste]

I wish it was GM instead, so they could call the company Gen-Italia.

for $8.5 bn in taxpayer money, we should at least get some entertainment value out of the deal.

[gogFloark]

I couldn't find the original thread

Seriously? Seriously?

[Podosinovik]

Hopefully...the Fiat 500 will come to the US!



I'd imagine that when DH comes home from Korea in 2012, he'd be all too happy to get the 500 rather than another Mini.

[toksenveste]

I didn't know they still made micromachines!!
ROME -- Fiat SpA is in talks with Italian banks about arranging up to €5 billion ($6.51 billion) in loans as it grapples with declining car sales and rising debt, according to a person familiar with the matter.

The move underscores the tough financial conditions Fiat faces as it attempts to take a 35% stake in Chrysler LLC as part of a broad strategic alliance...Fiat and Chrysler signed a non-binding agreement on Tuesday, but are under pressure to demonstrate that the potential alliance will revive the ailing U.S. auto maker as the global economic downturn saps car sales world-wide. The U.S. Treasury has told Chrysler it needs to come up with a sound restructuring plan by Feb. 17 to secure billions in government loans.

Fiat's industrial debt soared to €5.94 billion at the end of last year from €355 million in 2007, the company reported on Thursday. Fiat group revenue fell to €13.09 billion in the three-month period ended December 31, a 17% decline from the same period in 2007, when revenue was €15.81 billion.
Fiat Seeks Credit Facility From Italian Banks - WSJ.com
Overall I think it's a good move but the path from here to there appears to be rocky.

[Mark_NyB]

Fiat, lol. I never thought Italy could product such an ugly product. (The 500 is pretty sweet though - even tho thats a Ford/Fiat venture) Fortunately, they own Ferrari, Maserati, and Alfa too (ton of other companies as well) Pretty impressive/diverse company IMO. I hope they are better to work with than those damn Germans

Fiat - Wikipedia, the free encyclopedia

[Podosinovik]

Report: Fiat 500 headed to U.S. in 2010?

[Mark_NyB]

That would rock. Its a bit cleaner looking than the Ford KA. (which should be offered here too in '10...but it prob wont happen)

[preachadaq]

Overall it is about the best deal Chrysler could get or even hope for with a partner. It does show the overall weakness of the company. Fiat pays no cash. It is only providing its cars and technology.

Hopefully for the good of the economy the deal will work out and keep a lot of people working. It would also be nice to see Fiat buy the remaining Daimler share of the company. The sooner Cerberus is gone the better off the company will be.

On another note this past week Chrysler started pressuring already overstocked dealers to take more cars now that the assembly plants are going back on line. Reading between the lines it shows that they have already spent most of the loan money and are trying to get struggling dealers to help out with more cash. As of Friday they had only sold dealers 22% of their goal. It is a tough time to ask dealers to pony up.