Fiat CEO Marchionne: "If I was a betting man, I would suggest Chrysler is going to fall into Chapter 11"
After yesterday's Chrysler news regarding the first-lien holders and the U.S. Treasury coming to terms, we hope none of you thought the Pentastar had gotten off the see-saw. The latest tidbit comes from Fiat CEO Sergio Marchionne, but it comes via CAW head Ken Lewenza. According to Lewenza, Marchionne said that with two days left before Chrysler's got to show viability or go under, that "regardless of all the bondholders and stakeholders coming to the pump," if Marchionne had to put his money on the outcome he "would suggest Chrysler is going to fall into Chapter 11."
Also according to Lewenza, Marchionne also said "the Canadian plants are about as well positioned as you could possibly be,"so who knows, this could be Lewenza taking a dig at Chrysler and engaging in a little self promotion. Now we only have to wait and see if Fiat issues a 'clarification' of what Marchionne is reported to have said. For while Fiat isn't expected to put any money in for its potential stake in Chrysler, it is still being looked at as a possible savior, and those aren't the kinds of sentiments you want to hear from the person leading the cavalry moments before the battle is decided.
[Source: Auto News, sub req'd | Image: Giuseppe Cacace/Getty]
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Reader Comments (Page 1 of 1)
RamblinReck89 5:11PM (4/29/2009)
You need to be banned.
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zamafir 5:13PM (4/29/2009)
Anyone else not surprised at this forgone conclusion. It's like we're where we were when Daimler took over a then ailing Chrysler, only, one of our big ol' American companies isn't getting a foreign hand out this time. Who gets Jeep?
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the_MVP_X 5:29PM (4/29/2009)
Hmmm, I think Fiat let Chrysler fall so they can buy the stocks cheaper.
Chet 6:58PM (4/29/2009)
"It's like we're where we were when Daimler took over a then ailing Chrysler"
Yea, "ailing". You mean one of the most profitable and efficient companies at the time.
drudometkin 5:16PM (4/29/2009)
Must be trying to scare the lenders to get them to forgive debt.
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John 5:21PM (4/29/2009)
How about this proposition: Chrysler goes bankrupt, Fiat buys their operations (plants, dealers) and reenters the North American market.
I agree it's not likely, but that would ensure workers keep their jobs, we get rid of Chrysler's horrible cars and get better Fiats.
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David 7:06PM (4/29/2009)
Isn't that the whole point of this "partnership" anyhow? Fiat IS going to re-enter the market this way, and Chrysler will no longer produce any of its crappy product, except the Jeep.
LX builder 8:54PM (4/29/2009)
Yep the Challenger is so crappy they currently can't build enough to catch up to orders, want to get ride of that one for sure buddy.
Val 6:48PM (4/30/2009)
Yup, the challenger will save them, just wait 2 more days, when they will announce a 3000% increase in sales on monthly basis... Wanna drive a sebring? Didn't think so...
thomas 5:55PM (4/29/2009)
go back to ebaumsworld, troll.
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rwcmick 6:14PM (4/29/2009)
This whole account of what Marchionne said is via Lewenza. I don't know, call me crazy, but I'd like a more reliable, unbiased source.
Rather, I think that the White House, Fiat and Unions are doing some last minute posturing to try and get the best deal from the holdout lenders. Frankly, I don't think Chrysler is going to file Ch 11 tomorrow.
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firstyes! 8:18PM (4/29/2009)
Wrong!
BigWill 6:46PM (4/29/2009)
This isn't over yet. It'll be interesting to see if the creditor's committee rolls over and plays dead or fights being steamrolled. I'm sure GM's creditors are looking at this *very* closely.
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firstyes! 8:16PM (4/29/2009)
wtf? I'm an avid reader of this blog and this was an exciting moment for me. If you want to play moderator go start your own message board or blog
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Richard S. 9:50PM (4/29/2009)
Perhaps it is time to short Fiat stock. All those who married Chrysler have lost their pants.
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E90M3 8:24AM (4/30/2009)
If I [were] a betting man, I would suggest no Italian car will last 1000 miles without blowing a gasket.
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firstyes! 1:18PM (4/30/2009)
As opposed to Chrysler? LOL. How about actually going to Italy once in a while
markymark 12:50PM (5/05/2009)
I cant wait for FIAT to enter the US ,love them Alfa Romeos ,also the Fiat 500 will be a huge SUCCESS! I just came back from Italy and i know what i'm talkin about.Saw a lot of Chryslers in Europe also.I think they make a good couple!
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Carmelo Cutuli 5:43AM (5/09/2009)
Great Operations … with only one question.
Will the Italians have the long terms financial power to support this Automotive Colossus?
http://www.cutuli.it/index.php/sergio-marchionne-is-going-shopping-automotive-industries-worldwide/
I hope Mr. Marchionne have already in his pocket a good Buy-Out strategy … probably he has.
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