Jan. 19 (Bloomberg) -- Fiat SpA has agreed in principle to take up to a 35 percent stake in Chrysler LLC with an option to increase its stake, the Financial Times reported today, citing people familiar with the negotiations.
Fiat would invest in some of Chrysler’s plants to build cars for the Milan, Italy-based automaker and share technology in exchange for the stake. Fiat wouldn’t invest cash in Chrysler, the Financial Times said.
A deal could be announced within days, the paper reported.
AUTOMOTIVE NEWS
11:27 am U.S. ET | Jan. 19
UPDATED: 1/19/09 5:00 p.m. EST
Fiat Group is in negotiations with Chrysler LLC to form a strategic partnership that could include a Fiat equity stake in the ailing U.S. carmaker. The pact would help Chrysler speed up and strengthen its ongoing restructuring plan. (subscription req.)
FRANKFURT (Reuters) -- Daimler still wants to sell its nearly 20 percent stake in Chrysler, a spokesman for the German automaker said today before Fiat and Chrysler said they would form an alliance.
"We are still trying to divest our 19.9 percent stake in Chrysler," said the spokesman, who declined to discuss to whom it wanted to sell the holding.
Daimler has been in talks with private equity group Cerberus Capital Management, which bought 80.1 percent of Chrysler in 2007.
Fiat S.p.A. plans to acquire an initial 35 percent stake in Chrysler LLC. The deal will give Fiat the scale it needs to survive and allow Chrysler to broaden its product line to include small, less-polluting cars.
Said the Daimler spokesman: "We welcome any initiative that serves to stabilize the situation at Chrysler and preserve jobs at the company."
"... Meanwhile, according to the economic daily, "Il Sole 24 Ore", the Italian group [Fiat] is in negotiations with a consortium of banks about a credit line of 5 billion euros, which could be used to fund operations reconciliation..."
Does that mean that this generation of Ka is the last to share the fiat platform. I mean that automakers has tiws with almost every euro automaker and now with chrysler, it means they have a connection in some way to all big 3 american automakers.
I think we need to get our 'choppers to come up with some
ideas of what could result from the Chrysler/Fiat hookup.
They said that Chrysler could only use Fiat platforms, so
no Alfas or Lancias. I think the: 500, Panda, Linea (gd. Punto),
and Bravo could all be great plaforms for Chrysler.
Maybe even the Chroma, who knows.
Italy's Fiat SpA and PSA Peugeot Citroen of France declined to comment Thursday on speculation that the two automakers were discussing a deal or alliance.
Fiat CEO Sergio Marchionne would not discuss in a call to discuss the company's earnings the speculation reported earlier in the European press. But he confirmed that Fiat was open to further deals beyond its proposed alliance with Chrysler.
A spokesman for PSA Peugeot Citroen in Paris also declined to comment.
The French automaker also has indicated recently that it would consider alliances, and it has a long relationship with Fiat, its partner in three joint production ventures.
The Chrysler-Fiat "Deal."
This just in from the "Smoke and Mirrors" File, the bombast and promises emanating from the Chrysler camp over the "potential" of this Fiat deal border on the fanciful. A rumored seven Fiats for sale over here? Please. Even under an ideal scenario, with the stars aligned perfectly and a miraculous national economic recovery under way - a scenario no one has confidence in whatsoever - Chrysler would be hard pressed to get the first Fiat 500 to market in the U.S. in two-and-one-half years. As far as we're concerned, the Chrysler-Fiat "deal" is pure conjecture at this point because no one gets points in this business for having an idea - it's the execution that counts. In other words, it's automotive swamp gas until further notice.
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specifically re: the Fiat 500 (aka Cinquecento)
- imho Mr. De Lorenzo is forgetting the possible touch of FordMagic™ in the form of the KA
- the fact that Fiat does considerable platfrom sharing (I didn't know either until researching the 'Deal')...
500-based:
Panda......micro-thingie & 4x4
Fiorino......very small light commercial vehicle
Qubo.........passenger vanlet
600............rumored new vehicle also 500-based
other models are similarly 'cross-referenced' [ source ]
so when and how many Fiats could arrive here AND THEIR PROFITABILITY may surprise him - imho
how much they can help Chrysler is another story
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