As usual, the press is publishing rumors!
They've only entered into a preliminary, non-binding agreement. Here's the
official release from Bob Nardelli.
Dear Colleagues:
I’ve consistently promised that your leadership team would communicate fully
and directly to you regarding important business issues. Today, I have some
very important information to share with you regarding a positive new
development for Chrysler; one that will significantly enhance the long-term
viability of our great company.
In our continuing commitment to build a profitable enterprise for the
future, consistent with the viability plan we submitted to congress and with
the written and oral testimony I made on behalf of Chrysler, we are
announcing today that Cerberus, Chrysler LLC and Fiat S.p.A. have entered
into a preliminary non-binding agreement to establish a global strategic
alliance. Upon completion of a due diligence process and required approvals,
the agreement is expected to be completed as early as April. You can read
the external announcement on the Scoop.
This alliance provides significant strategic benefits that support our
viability and long-term competitiveness, including product and platform
sharing, global distribution, and operational and business efficiencies.
Fiat would also 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.
Under the agreement, Chrysler will have access to all Fiat group vehicle
platforms, which would complement our current product portfolio with
fuel-efficient, environmentally-friendly small cars and powertrain
technology. The alliance would greatly increase the global reach for our
three brands in markets outside of North America, and Fiat’s distribution
organization would provide Chrysler a strong partner to help build our
brand’s presence in important markets where we have little presence today.
Fiat would benefit from product and technology sharing as well, with access
to our vehicle platforms and our manufacturing capabilities in North
America. In addition, Chrysler would assist Fiat to bring their brands to
the U.S. market.
As a condition of the U.S. government loan agreement, all constituents will
be asked to contribute to Chrysler’s restructuring effort including:
lenders, employees, the UAW, dealers, suppliers and Chrysler Financial.
This partnership would adhere to the conditions of the U.S. government loan,
and help us provide a return on investment for the American taxpayer by
securing the long-term viability of Chrysler brands in the marketplace. The
alliance would help sustain Chrysler’s product development, manufacturing,
and sales operations here in the U.S which further supports our viability
plan, and preserves American jobs. Our partners at the UAW have announced
their endorsement of the proposed alliance.
Along with the rest of the leadership team, I am aware of your desire and
need to learn as soon as possible how the alliance will affect you
personally. The agreement is just the first step, and we intend to keep you
informed of key developments on an ongoing basis.
You have brought great pride to the Company through your tireless efforts to
make Chrysler successful. Please continue to approach the important work you
do with the same passion and commitment today and throughout the weeks ahead
as we work together with all our constituents to implement our viability
plan, and pursue this exciting new alliance.
Bob
Thanks,
Tom Hargrave
www.kegkits.com
256-656-1924
-----Original Message-----
From: mercedes-boun...@okiebenz.com [mailto:mercedes-boun...@okiebenz.com]
On Behalf Of Archer
Sent: Tuesday, January 20, 2009 7:15 AM
To: Mercedes Discussion List
Subject: [MBZ] Fiat gets 35% stake in Chrysler
Hallelujah! We can again buy Yugos (Fiats). (Daimler has a stake in Fiat.)
Gerry
--------------------------------------------------
LONDON (MarketWatch) -- Italian carmaker Fiat SpA on Tuesday struck a deal
to get an initial 35% stake in struggling U.S. carmaker Chrysler in exchange
for its technological expertise, distribution network and management
services.
Chrysler said the alliance, a key element of its viability plan, will
provide it with "access to competitive, fuel efficient vehicle platforms,
powertrain and components to be manufactured at Chrysler sites." Fiat will
also lend its distribution networks in key growth markets and provide
"management services" supporting Chrysler's submission of a viability plan
to the U.S. Treasury as required.....snip
http://www.marketwatch.com/news/story/Fiat-gets-35-stake-Chrysler/story.aspx
?guid=%7BC54580BF-7CBA-4248-A5B9-79A9428DDDC2%7D
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