Advertisement

Fiat and Chrysler deal may be completed by mid-February


The first Fiat models could arrive in showrooms within a year, while actual North American production of these cars could start by 2011

The first Fiat models could arrive in showrooms within a year, while actual North American production of these cars could start by 2011

Enlarge Photo
Fiat and Chrysler first released a joint statement announcing they had signed a non-binding term sheet to establish a global strategic alliance just over two weeks ago but according to Fiat's CEO the deal could be signed and completed by as early as the middle of this month. The alliance, to be a key element of Chrysler’s viability plan, would provide the American carmaker with access to competitive, fuel-efficient vehicle platforms, new powertrains, and components to be produced at Chrysler manufacturing sites.

It would involve Fiat acquiring up to 35% of Chrysler in return for product and platform sharing, technology sharing, and access to international markets. As complex and far-reaching as the deal appears, Fiat CEO Sergio Marchionne has told the Wall Street Journal that it could be completed in time for Chrysler’s viability presentation to Congress that is currently scheduled for February 17.

Marchionne said management was still analyzing Chrysler's vehicle production operations and will soon turn to studying its finances. The Fiat CEO also reiterated that no significant exchange of cash would take place under the deal.

If everything goes to plan, the first Fiat Group models, such as the Fiat 500 minicar, could be on sale in the U.S. in just one year’s time, while more compact and fuel-efficient Fiat vehicles could begin rolling out of Chrysler plants by the middle of 2011. According to insiders, seven different Fiat Group vehicles would be brought to the U.S. market under the deal – four sold under the Chrysler brands and three as Fiats or Alfa Romeos.

Fiat would also eventually build the 500 and one or two Alfa Romeo models at Chrysler assembly plants, Marchionne said. Fiat would cover the cost of adding those models to the plants, but Chrysler would have to finance tooling and development work to build cars, engines and transmissions for its brands.

It is not just a one way street as Marchionne also revealed that Fiat could benefit from Chrysler’s LX RWD platform - currently underpinning cars like the Chrysler 300 and Dodge Charger – by using it for its own large luxury-performance vehicles.
Advertisement
 
Follow Us

 

Have an opinion?

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (2)
  1. I say Fiat should take over Chrysler, then we can get Alfa back in the States sooner and put those cars in Chrysler dealerships will draw attention to the dealerships.
     
    Post Reply
    Vote
    Bad stuff?

  2. Least the deal will go through, not be held up by the U.S. Treasury.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion? Join the conversation!

Advertisement

Take Us With You!

 
New Car Price Quotes
Update ZIP
We care about your privacy. By submitting your request, your data will be subject to our Privacy Policy and Terms and you agree that the dealers checked above may contact you using an auto dialer or an automated message.
Advertisement
Advertisement

Research New Cars

Go!

Related Used Listings

Browse used listings in your area.


 
© 2014 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.