Fiat's acting like it hasn't eaten in years, hungrily throwing down for the pieces of the business that troubled automakers are trying to spin off. General Motors Europe is seriously contemplating cutting free its Opel unit, and Fiat's Sergio Marchionne has been meeting with management and union higher-ups in Russelsheim about a deal that would see Fiat taking on Chrysler and Opel.
After weeks of speculation, Fiat confirmed today that its CEO, Sergio Marchionne, will assume the same role with Chrysler once it exits bankruptcy. According to statements from the Obama administration, Chrysler could emerge from "surgical bankruptcy" in as little as 30 to 60 days, after which Chrysler's current chief executive Bob Nardelli will step down and Marchionne will step in.
Fiat 500 - Click above for a high-res image gallery
Think Fiat's getting a pretty sweet deal with Chrysler? The Italian automaker is, after all, gaining a 20% stake in the troubled American automaker, plus local manufacturing capacity and access to its dealer networks, all without paying a thin dime. Not a bad deal, but Chrysler's hard at work trying to make it sweeter. Emerging reports suggest that if the deal between Fiat and Chrysler were to fall apart, Chrysler would be obligated to pay Fiat $35 million in severance fees.
We all know by now that Fiat will take an initial 20% stake in Chrysler in exchange for supplying the bankrupt automaker small-car platforms and fuel efficient drivetrains. Further down the road, Fiat will have the opportunity to purchase a large stake in Chrysler, upping its ownership to 35% and between 2013 and 2016, the Italian automaker can take an additional 16% share of Chrysler, bringing its total to 51% and gaining majority control. However, until Chrysler repays its loans to the U.S. Tr
President Obama has just concluded a televised press conference where he announced that Chrysler will indeed head into Chapter 11 bankruptcy proceedings almost immediately. As part of the same announcement, he noted that the Auburn Hills automaker has reached terms with Fiat and will be headed into a partnership agreement that will include a cash infusion and technology transfers. By some estimates, the restructuring is expected to take 30-to-60 days.
According to The Detroit News, Guenter Verheugen, the European Union's Industry Commissioner, lashed out at Fiat on Friday in a radio interview, voicing concerns that the Italian automaker is acting irresponsibly to be considering new mergers and acquisitions when the company is already in debt. The public tongue-lashing from the EU official sent Fiat CEO Sergio Marchionne to the microphones to defend his position, asserting that the commissioner's "comments are not helpful to the ultim
Any pending arrangement between Chrysler LLC and Fiat SpA could see a huge reshuffle of Chrysler's manufacturing facilities all across North America to make way for joint production of a new generation of vehicles to be sold with Chrysler, Dodge, Jeep, Fiat and Alfa Romeo badges. Included among the possible sites for retooling are those in Windsor, Ontario, Canada; Toluca, Mexico; and Belvidere, Illinois.
If you were surprised by the "resignation" of GM chief Rick Wagoner late last month, get used to the idea. Chrysler reportedly has some major management changes in store as well, including a new seven-member executive board including representatives from Fiat and the Obama administration's automotive task force. But while Bob Nardelli may stay on to chair that board, Chrysler's next CEO m
While the 2011 Jeep Grand Cherokee wowed the crowds in New York, what lies beneath could be a key to Chrysler's recovery. The new 3.6-liter V6, called Pentastar after the company's five-pointed-star logo, replaces seven – count 'em, seven – of Chrysler's aging engines, and stands as the outcome of several years of development.
Not long after the President concluded his televised press conference today, Chrysler released a statement saying that it and Fiat have already reached an "agreement on a framework of a global alliance".
Click above for a gallery of slides outlining Chrysler's planned alliance with Fiat
Everybody remembers the first two rules of Fight Club. But what about the rest of them? Like the fourth rule: "Only two guys to a fight," and the fifth rule: "One fight at a time, fellas." In mergers and acquisitions terms, only two parties to a merger, and one merger at a time. Well it looks like the fellas over at Fiat might want to watch the movie read the book over again, because they appear to have forgotten the rules.
The ink isn't even dry yet on the deal between Chrysler and Fiat, but design executives from both automakers are slated to begin meeting next week to discuss collaboration on future products and how Fiat's current offerings can be adapted for Chrysler's needs.
For over a decade, ownership of Chrysler has been bouncing back and forth over the Atlantic like an Airbus jet. Since its founding in 1925, it was independently owned and operated right out of Detroit, then Daimler bought controlling interest in 1998, only to sell it to U.S.-based Cerberus Capital Management. Now Fiat is poised to assume a 35% stake in the company. So the question is, who holds con