A report in Automotive News says that Chrysler is looking at a possible strategic partnership with Fiat. Unlike Ford and General Motors, Chrysler doesn't have a substantial European presence nor does it have much experience building the smaller cars popular in Europe.
The report speculates Fiat would give Chrysler access to its small car platforms, engines and transmissions. In return, Fiat may get cash or an equity stake in Chrysler. Fiat could also use the partnership to jump start its long-planned re-entry into the U.S. market. Fiat CEO Sergio Marchionne has said he would like to see the Fiat 500 minicar in the States if it could be built locally. Alfa Romeo has also been looking into reestablishing an American presence.
kcram says:
12:12 PM, 01/19/09
Automotive News has updated the story to say Fiat would receive a 30-35% equity stake in Chrysler as part of the deal. I happen to like this possibility, since there is very little overlap between Chrysler and Fiat; plus, they have what the other company needs in terms of local distribution (Chrysler in North America, Fiat in Europe and Brazil).
moparbad says:
12:36 PM, 01/19/09
Or, Fiat could buy Hummer from GM, change the signage to Fiat/Alfa/Lambo and get GM to throw in a couple of assembly plants and they would be in business in North America.
Nissan Renault is a better partner for Chrysler.
stovt001 says:
01:43 PM, 01/19/09
Sounds good to me. Hmm, a Chrysler/Fiat union. Both have good styling (subjective, of course) but poor reliability. Sounds kinda like two ditzy models hooking up. It will be interesting to see what comes of it. Since Fiat is looking for US facilities and Chrysler needs small cars, this match does seem perfect.