Chrysler-Fiat deal OK’d
June 3rd, 2009 by Richard Aucock
CHRYSLER will be sold to Fiat, a US bankruptcy court has finally approved, to form a new alliance.
It creates, says Chrysler CEO Bob Nardelli, a ‘new Chrysler Group’.
This means Chrysler will be able to sell remodeled Fiats in the US – the greener models that American car dealers are desperate for.
There will also be scale efficiencies for distribution and technology development. Fiat gets a vital grounding in the massive US car market, too.
‘Chrysler Group will soon begin operations with significant strategic advantages,’ said Nardelli.
Such as? ‘A wage and benefit structure for active and retired employees; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers.
‘While this has been an extremely difficult chapter in Chrysler’s history for all involved, the new company and its customers, employees and suppliers can now begin on a fresh page.’
The new Chrysler Group will also take over international operations, meaning Chryslers, Jeeps and Dodges will continue to be supplied to UK car dealers.
It is a big success for US courts and procedures; the new company will be smaller, but the intention is for it also to be viable.
And, with Chrysler out the way, now the Chapter 11 experts turn their attention to GM…
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June 3rd, 2009 at 9:31 am
Still don’t see what is in it for Fiat. The GM link did nothing for getting a foothold in USA so why would Chrysler and their very ordinary product range. From a UK perspective it does at least sound like good news for jobs over here
June 3rd, 2009 at 10:09 am
This is the best thing that could’ve happened for this brand from the dark ages… they need to be able to compete with the European brands, and Fiat will enable them to do it. They wouldn’t survive the year without this. The smallest car Chrysler Group make at present is a 1.8! Not a great advert for this climate, financial or environmental!