Despite the fact that Fiat has a controlling stake in Chrysler, the Italian automaker cannot take advantage of the Pentastar's recent success to ease its pain in Europe.

Chrysler is on a roll right now, with an improving product portfolio, most recently highlighted by the Dodge Dart small car. The Pentastar brand has combined cash and credit worth $13 billion, but according to a new USA Today report, the Italian automaker cannot plunder Chrysler to address shortfalls on its end. Fiat was forced to cut capital expenditures in 2012 by $612 million, and while the brand posted a $440 million profit, without Chrysler's earnings, it would have been a $302 million loss.

So while the temptation might be there to move around funds where it is needed most, protections have been put in place by the U.S. government. According to Marichionne, "Firewalls are up, [Fiat] can't get to it."

As part of the original deal with Fiat and the U.S. government bailout, Fiat cannot get access to Chrysler's increasing stockpile of cash. It can, however, keep profits, of which Chrysler earned $436 million in the second quarter off this year.



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    • 1 Second Ago
  • 25 Comments
      LifeLongCarGuy
      • 2 Years Ago
      I understand why the US government made this provision. Fiat could have easily used all Chrysler's profit to boost the Fiat brand and eventually sell off Chrysler, leaving the US with another financial dilemma of the automotive type on it's hands. On the other hand it sucks from a business perspective that you have the capital to save a brand and can't use it. Like GasMan said, there are ways to get the funds where they need to be and I suspect it will happen.
      Benjamin Roethig
      • 2 Years Ago
      Considering what Diamler did to Chrysler, this was very prudent.
      • 2 Years Ago
      [blocked]
      Justin Campanale
      • 2 Years Ago
      Well, anyways, I'm glad that Chrysler is doing so well, especially after almost dying in 2009 ( thank you, DBAG!). They are quickly becoming on of my favorite car companies with cars like the Durango, Daet, and Grand Cherokee. It's hard to think that just a while back the only competitive models they made were from the SRT line.
      to your email L
      • 2 Years Ago
      Are they allowed to exploit (if they haven't already) the larger car platforms etc. for use in some of their Alfa Romeo, Lancia and other pricier products, I mean they've already used the Dart Platform for their Chinese Fiat. It's not just funds it what they can get you like successful plaforms (and ultimately the one for the 300 et al is from Daimler Benz isn't it and that ain't bad)
      Tony Cipriano
      • 2 Years Ago
      There would be no Chrysler if Fiat had not taken over. They took the gamble and now its paid off big time the press want to portray them as the bad guys for wanting to save the parent company? How many American jobs did saving Chrysler maintain and create?
      Robert Niknam
      • 2 Years Ago
      Good. Daimler raped Chrysler and left them for dead... This time they did it right.
      BMW ROCKS!
      • 2 Years Ago
      obama is smarter than i thought
      Reno Dillard
      • 2 Years Ago
      Kinda like what GM did with Saab?
        imoore
        • 2 Years Ago
        @Reno Dillard
        Saab didn't have anything to begin with. They sucked money from GM until GM wised up and cut them off. Just like MG Rover was BMW's English Patient, Saab was GM's Swedish Patient.
      A P
      • 2 Years Ago
      Thank GOD! The stinking, filthy Germans that ran MB raped the old Chrysler and drained all of the cash from US banks then left it to die. There is NOTHING worse than an European businessman.
        brian
        • 2 Years Ago
        @A P
        ...except an American Businessman that sells out companies for profit and sends jobs overseas.
      • 2 Years Ago
      [blocked]
      whofan
      • 2 Years Ago
      The day will come when Chrysler and Fiat will be one. Remember Chrysler is 49% American owned with Fiat at the wheel.
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