Fiat to take over 35% ownership in Chrysler
 

This is pretty awesome, I think it's a good move for Chrysler, but I wonder how Joe Six Pack down in the Southern U.S. is going to feel about his Mopar being built by Mario and Luigi hahaha ;)


http://finance.yahoo.com/news/Fiat-a...-14103188.html

ROME (AP) -- Fiat and Chrysler said Tuesday they have agreed to form a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker and could eventually bring it full control.

The deal means Chrysler, which is fighting off bankruptcy and struggling to sell less fuel efficient larger models, would have access to new markets and cheaper, more environmentally friendly technologies.

Fiat Group SpA, which makes Fiat, Lancia and Alfa Romeo vehicles, would gain a foothold in the huge U.S. market. The company has bounced back recently with cars such as the tiny 500 two-door hatchback, a hit remake of an earlier iconic Fiat model that competes with Daimler AG's Smart, BMW AG's Mini and other very small cars.

The two companies said in a joint statement that in exchange for sharing its small-car platforms and fuel-efficient engines, Fiat would take an "initial" 35-percent stake in Chrysler but would not invest cash.

The indication that Fiat could eventually gain full control was further backed by John Elkann, Fiat vice president and heir of its founding Agnelli family, who was quoted as saying by the ANSA news agency that the company's stake "could increase."

However the joint statement stressed that the Turin-based Fiat was not committing to funding Chrysler in the future.

CreditSights analyst Brian Studioso said Fiat, which has its own challenges this year from continued drops in car and truck production, isn't in a position to part with cash.

"For Fiat, the non-cash transaction would limit downside exposure while giving the company a foothold in the North American market," Studioso wrote in a note to investors.

For Chrysler, based in Auburn Hills, Michigan, the deal would mean breaking out of the North American market and gaining access to more competitive products............. *continued in link*

Bring on the 500 Abarth and the Bera!!

Finally...Italian cars I want and can afford.

does "Fix It Again Tony" still apply for current fiat products?

Yes but they are filllllled to the brim with passion you should just let it be.:haha:

Fiat owns ferrari and maserati too dont they.......
Ill buy a chrysler if it has Ferrari styling:thumbsup:

Fix It Again Tony no longer applies these days. This really applied to cars pre-1980s. My Vespa and Alfa Romeo are living testaments! :D

The world will soon be owned by Fiat, Tata, Porsche. They are taking over everyone.

bring the Fiat 500!!!!!!!

North American culture won't accept european microcars, especially when we still have all these SUV's lumbering around and the general public's view of small car = death trap.

I think that perception has changed a lot in the last 5 years. They are selling the smart car in the US now, and that car is smaller than even the 500.

The Canadian market has always had a larger small car market. You might see Chrysler-Fiat experimenting here first. Our market is a lot more accepting of smaller vehicles.

This ownership stake should be interesting.

Yes yes yes.

Bring in the 500 Abarth (I'd settle for a regular 500) and some Alfas back!

interesting...one european corporation dumps them, another picks them up...Fiats in NA? works for me!

Will they be selling Fiat/Alfa's at existing Chrysler dealerships??

No, they will be selling Alfa's in a joint Ferrari dealership and possibly their own. Alfa's are planning for a come back in 2010.