Chrysler finds new small car source in Italy and Fiat
With the big announcement today that Fiat and Chrysler (OK, technically, Fiat S.p.A., Chrysler LLC and Cerberus Capital Management L.P.), have agreed to a non-binding term sheet to establish a global strategic alliance, we naturally wondered how this will affect Chrysler's small car sales in the U.S. The deal will allow Chrysler to get immediate access to the Italian manufacturer's array of subcompact and compact front-wheel drive fuel efficient platforms, the most efficient in Europe. With this deal, Fiat will get a 35 percent stake in Chrysler in exchange for Fiat's platforms. Fiat has already worked with an American manufacturer, since it actually developed an array of small diesels with GM's European subsidiary Opel/Vauxhall. Chrysler already announced a deal to sell a Nissan-made subcompact in certain Latin American markets. We'll have more on the Chrysler-Fiat deal later.
[Source: Chrysler, Automotive News Europe (subs. req'd)]
Reader Comments (Page 1 of 1)
realistic_idealist 9:09AM (1/20/2009)
too no one's surprise Chrysler finally whored itself off to the cheapest suitor.
the Dodge brothers must be rolling in their graves or maybe they're laughing with karma on this one...
"another one bites the dust"
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MemphisNET 9:26AM (1/20/2009)
This is good news for them, and shows that they're not dead at all. Fiat 500 = 3rd gen Neon :D
1st Gen -- Hi! I'm fun and sporty but I lost my head too many times
2nd Gen -- Hello. I'm a pretty reliable person, but my younger brother and new step-parents made me an outcast.
3rd Gen -- Buongiorno! I'm cute and quick on my feet -- and I've got new clothes too!
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Paul Sallmen 4:56PM (1/20/2009)
Actually, this looks a light at the end of a dark tunnel for Chrysler. This will allow Fiat to enter the North American market (mainly through re-badged Chrysler subcompacts). However I imagine a car like the Fiat 500 will arrive without modification. This will allow Chrysler to have a much needed compact and subcompact line. If the quality is up to snuff, then this seems like a saviour for Chrysler. It's been years since Fiat has sold a new car in North America. I'm sure the "Fix it again, Tony" moniker doesn't apply anymore.
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