Jan 20th, 2009 at 10:10 am
Fiat Bailing In To Chrysler
It seems that Fiat may get 35 percent of Chrysler in exchange “for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S.” Given that it seems almost nobody wants to buy any car of any sort, it’s a bit hard to know why Fiat thinks this is a good time to start up a North American operation. On the other hand, Chrysler seems to be just about giving equity away at this point. And I think the Italian government in more generous with its bailouts of national champions than we are.
59 Responses to “Fiat Bailing In To Chrysler”
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January 20th, 2009 at 10:17 am
Fiat has come far from the days when it was believed that it was an acronym for, “Fix It Again, Tony.”
They build stylish, sporty cars, and long-term, an entry to the US is a good idea for them.
January 20th, 2009 at 10:24 am
Kind of an odd comment, Matt. This is probably the best time for Fiat to step into U.S. car manufacturing – they’re entering at the bottom of the market, or at least when the market’s way down.
It was Daimler that invested in Chrysler at the top of the market, and look what that got them.
January 20th, 2009 at 10:37 am
Cinquecento!
January 20th, 2009 at 10:50 am
The U.S. is plenty generous with its bailouts of national champions. Chrysler just isn’t a national champion.
January 20th, 2009 at 10:58 am
The little Fiats (especially the 500) are the kind of cars that might have a place in the US market, but there’s no dealer network, no maintenance base, etc.
January 20th, 2009 at 11:04 am
Seems pretty simple to me. They pay the cost of refurbishing a factory. They get a local manufacturing base and a third of a large rival. Sounds like an absolute bargain, no matter what time it is.
January 20th, 2009 at 11:18 am
Ginger Yellow,
Not only that, but they get access to Chrysler’s dealer networks. They can sell rebranded Fiats in America as “Chrysler Taifs” or something like that.
January 20th, 2009 at 11:29 am
I hope they don’t rebadge the Fiats as Chryslers….I hate rebadges!
January 20th, 2009 at 3:32 pm
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