Alfa back to the US with Chrysler?

[RussianM3_dude]

Fiat reliability and Chrysler design and handling? Match made in heaven...





















NOT!!!!!

[RussianM3_dude]

I think it might be a smart move on the part of FIAT. They haven't payed a dime and if the big C implodes FIAT might be able to pick up some juicy bits from the carcass before the other vultures swoop in.

[ECARRILLO]

More news, I think it's gonna happen.


FIAT MAY BUY ONE-THIRD STAKE IN CHRYSLER. Italy’s Fiat SpA is in talks with Chrysler LLC about buying an equity stake of as much as 35% in the U.S. automaker, according to several news reports.
The Wall Street Journal says the deal, which could save the two companies an estimated $3 billion-$4 billion per year, could be announced as early as today. The newspaper
says Fiat could have the option to increase its stake to 55% over time.
A Fiat alliance would give Chrysler some financial stability and provide small cars and powertrains for it to sell in the U.S. Both factors could help Chrysler satisfy the terms of its $4 billion federal bridge loan by showing it can become viable—something analysts say it can’t do solo— by the government’s March deadline. The U.S. company also would gain access to Fiat’s distribution network in Europe and Latin America.
In return, Fiat would get the chance to manufacture its own vehicles at underutilized Chrysler plants and sell them through its partner’s domestic dealer network. Chrysler confirmed last summer it was in talks about allowing Fiat to use excess Chrysler factory capacity to build Alfa Romeo cars. Fiat also talked to BMW AG last summer about sharing
small-car components and platforms and using BMW’s Mini dealer network in the U.S.
Last month, Fiat CEO Sergio Marchionne told Automotive News Europe the company needs a partner to survive the global auto shakeup. He also said Fiat was seeking an ally to help it gain economies of scale in a deal that could go beyond project-specific alliances to include equity crossholdings.
That newspaper, which was first to report the latest negotiations with Chrysler, says Fiat executives have met in New York City with Chrysler’s dealers and Cerberus Capital Management, which owns 80.1% of the automaker. It isn’t clear whether Daimler AG, which owns 19.9% of Chrysler, would sell its stake to Fiat. The Agnelli family, which owns a 30% controlling stake in Fiat, said last month it supports the company’s search for a partner.

[paulbinct]

Thanks for all the doom, guys. What could ARDONA have to do with this? This is a 35%!!! stake in CHrysler, not a joint marketing agreement. There is the real potential for more US government and probably Italian government support for this. Chrysler has no small car business, so no overlap. Fiat is paying 000000 dollars from what I have read, they just share what they already have. Marchionne (sp?) is a genius in my opinion, taking advantage of a fire sale price to do what he has wanted for a long time. He recognizes Fiat cannot survive as it is now. We WILL have $4.00 gas again in a year or two, and Fiat will be ready to supply world class cars that will blow the doors off of the other domestic and most of the foreign competition. Cars to compete with the Mini, of course the Focus, and all the Korean/Japanese clones. Come on people, get fired up!!!!!

[ECARRILLO]

Fiat confirms plan to acquire 35% stake in Chrysler

Luca Ciferri
Automotive News
January 20, 2009 - 3:15 am ET
UPDATED: 1/20/09 6:20 a.m. EST


TURIN, Italy -- Fiat S.p.A. and Chrysler LLC confirmed today that the Italian company intends to acquire an initial 35 percent stake in the U.S. carmaker.

In a joint statement, Fiat, Chrysler and Chrysler's majority shareholder Cerberus Capital Management L.P, said they have signed "a non-binding term sheet to establish a global strategic alliance."

The pact "would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrains, and components to be produced at Chrysler manufacturing sites," the companies said.

Under the terms of the deal, first reported on Monday by Automotive News Europe, Fiat would make available its distribution network in key growth markets. "Substantial cost savings opportunities" would be available to the alliance, the companies said.

The transaction already has the blessing of the UAW. UAW President Ron Gettelfinger said in the press release:

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability."

PRESS RELEASE: Fiat Group, Chrysler and Cerberus Announce Plans for a Global Strategic Alliance

Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.

The alliance, to be a key element of Chrysler's viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required. Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base.

The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler's long term viability plan. Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury.

As a consideration for Fiat Group's contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler's current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

"This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved," the CEO of Fiat Group, Sergio Marchionne said.

"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability," said Ron Gettelfinger, President United Auto Workers (UAW).

"We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs," said General Holiefield, Vice President, United Auto Workers (UAW).

[silverspider]

This seems like this is a win, as well as the best hope yet for the meaningful return of Alfa to the states. Mercedes treated Chrysler like a redheaded stepson in the basement, four-year old technology and platforms to its merged "equal", while trying to maintain its luxury class brand integrity at the same time. Fail.

This seems like an altogether different proposition, especially products-wise. Here's hoping Fiat tries to bring relatively undiluted European models here. Cause for optimism.

[Zunige]

Quote:

Originally Posted by silverspider This seems like this is a win, as well as the best hope yet for the meaningful return of Alfa to the states. Mercedes treated Chrysler like a redheaded stepson in the basement, four-year old technology and platforms to its merged "equal", while trying to maintain its luxury class brand integrity at the same time. Fail. This seems like an altogether different proposition, especially products-wise. Here's hoping Fiat tries to bring relatively undiluted European models here. Cause for optimism.

[Alfissimo Int.]

Quote:

Originally Posted by Zunige +1! I am optimistic as well... Alfa has been selling cars in this hemisphere for a while (Mexico, Peru, Chile, Argentina, Brazil) so it made sense for them to be serious about returning to the largest market, but I had truly lost all hope that any serious effort would be forthcoming - especially this soon... Best regards,

[lowmileage]

Looks like I can now make one trip to pickup both my Spica and Cherokee oil filter.

[ECARRILLO]

I feel optimistic as well, I think this will take some time. I assume they will have a couple of Fiat / Alfa plants in the US. They will need to tool them up along with suppliers for components. In the mean time, they can start selling their current vehicle lines (granted if they pass all of the DOT stuff), but not many people are buying cars, let alone foreign cars.
Let’s hope this is good for both companies and for the US! Hope that they bring more jobs over here and that the cars built in the US can be sold across America.

[AlfaTango1]

Quote:

Originally Posted by RussianM3_dude I think it might be a smart move on the part of FIAT. They haven't payed a dime and if the big C implodes FIAT might be able to pick up some juicy bits from the carcass before the other vultures swoop in.

[alfaparticle]

Don't worry, our children and grandchildren will get stuck with the bill.

[MALDI]

For a more cynical (realistic?) view read this editorial at The Truth About Cars:

Editorial: Chrysler Suicide Watch 42: La Grande Bugia | The Truth About Cars

[AlfaTango1]

Quote:

Originally Posted by MALDI For a more cynical (realistic?) view read this editorial at The Truth About Cars: Editorial: Chrysler Suicide Watch 42: La Grande Bugia | The Truth About Cars

[Aghevli]

I assume this means we will soon see a swap in power trains for these two respective companies. Does Chrysler have any suitable rear wheel drive platforms available that Alfa could use for their future cars? I would hate to see Sebring handling on the upcoming 169.

So far, all I can fathom is the return of the Alfa Matta.
Alfa Romeo Matta - Wikipedia, the free encyclopedia