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Chrysler: Please sir, we want some more

 
4 1,444 views Jan 30, 2009

Chrysler CEO Bob Nardelli says an additional $3 billion is needed to close its alliance deal with Fiat

Chrysler CEO Bob Nardelli says an additional $3 billion is needed to close its alliance deal with Fiat

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Less than a month after receiving the first $4 billion from the federal government’s bailout package for the auto industry, Chrysler has revealed that it needs an additional $3 billion to help close an alliance deal with Italy’s Fiat Group. Unlike General Motors, which has been allocated up to $9.4 billion in restructuring loans, Chrysler was only given $4 billion despite the claims that it needed at least $8 billion to completely reform its operations.

The fact that the latest demand is to help facilitate an alliance with a foreign carmaker seeking to gain from the deal, lawmakers in Washington are wary to offer more money. There is also the possibility that Chrysler could one day be controlled by a foreign carmaker.

Despite this, Chrysler will have its chance on February 17 when it is scheduled to present a viability plan that the Obama administration will use to determine whether the automaker will receive more loan money.

As some solace, Chrysler CEO Bob Nardelli told the Detroit Free Press that the additional $3 billion loan and Fiat deal could be closed "basically back to back" after the company meets its loan conditions. He also said that no tax dollars would actually go to Fiat and that the alliance deal was in line with U.S. Treasury's own request for significant restructuring actions.



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Comments (4)

  1. ma_Chris avatar Chris Posted: 1/30/2009 5:52am PST

    ok.. now that is just funny. MA: i love the humour... getting a real top gear vibe from it..

    but yeah.. thats just ridiculous... "give us money so we can get bought out by a foreign company".

    shame.

    i hope ford and GM can grow enough to take over the american industry so that when chrysler crashes, they dont take down the other two
     
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  2. ma_NoNameDenton avatar NoNameDenton Posted: 1/30/2009 6:00am PST

    Technincally not being bought out since Fiat only gets 35% of the company, Cerberus will still own 45% making them the largest holder of stock.
     
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  3. ma_Chris avatar Chris Posted: 1/30/2009 2:36pm PST

    true denton.. up until fiat buys the other 20% that daimler owns.. or how ever that works out... point is fiat has 20% more in options available to them.

    its kinda like a truck.. you can buy the work version with a vinyl bench seat... or you can get the quad cab with 4 captains chairs, 3 tone hand stitched leather, and the big V8....... all about the options
     
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  4. ma_NoNameDenton avatar NoNameDenton Posted: 1/30/2009 3:24pm PST

    I just meant for now, they have the option to get 55%, never said when they will use it though
     
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