Only Chrysler Would Want Fiat Technologyby Brad Warbiany
Perhaps, in some alternate universe where Italian cars were known for reliability and value rather than performance and beauty, this might make sense:
Chrysler LLC said today it was striking an alliance with Fiat S.p.A. that will give the Italian carmaker 35% of Chrysler in return for sharing technology, manufacturing and management.
The deal must be approved by regulators, including the U.S. Treasury, which oversees a $4-billion rescue loan of Chrysler. Fiat did not commit any cash to the deal, and made no vows to do so in the future.
Chrysler said the deal would give it access to Fiat’s engine and other vehicle technology that Chrysler would build in its plants. Fiat will help sell Chrysler vehicles in foreign markets, where Chrysler lags its competitors today. And Chrysler said Fiat would “provide management services supporting Chrysler’s submission of a viability plan” to federal regulators.
Chrysler agreed to give up 35% of its equity in exchange for Fiat’s technology and no cash. The only thing dumber than this would be if we taxpayers were on the hook for Chrysler’s financial position.
Oh, wait… Now that I think about it, this is bizarro universe. Can someone find me a way to get back to the sane one?