Fiat & Chrysler in partnership talks! EDIT: Fiat completes Chrysler buyout

Mpower · 20th March 2009, 17:37

Hey maybe they'll throw the TATA Xenon in there with a petrol engine for uSA.

after all Ratan Tata sits on Fiat's board.

vivekiny2k · 30th April 2009, 21:35

Chrysler to File Bankruptcy - BusinessWeek

GTO · 19th May 2009, 14:54

An interesting take on Fiat's marriage with Chrysler : Linky

lamborghini · 1st June 2009, 04:56

Just to update this thread:
Some things I have noticed during my stay in the U.S:

- Hatchbacks are quite popular. The 500 will be a nice cheaper alternative to the Cooper and Beetle admirers. Also, the golf is doing quite well and Fiat should think of launching the GP here as well.
- Diesel technology is catching up, with Mercedes, BMW, VW all offering diesel options with their cars. Gas prices are rising. As of today, I paid $2.70 for gas v/s $2.30 a month ago.

raveen_2023 · 1st June 2009, 08:22

I think Fiat would benefit more from this venture than chrysler, because hatch back sales are negligible in US compared to sedans, even with higher gas prices.

lamborghini · 1st June 2009, 09:42

Here's a question, a rather stupid one, but one which I find extremely confusing: Is Fiat merging with Chrysler, or acquiring Chrysler or is this a J.V. like with Tata?

amit · 1st June 2009, 10:38

Isn't Fiat out of the picture now?

I have been reading about some deal reached between the German government and Canadian parts maker Magna alongwith some Russian company. I somehow think Fiat would have been a better option since they are car makers and understand the European market very well. Fiat-Opel have also been invovled in developing cars together, the new Corsa being made on the Grande Punto platform and they also share the MJD engines in their cars. I am not sure how Magna and the Russian company will resurrect Opel. Hopefully, Opel wouldn't be on the block again in a few months from now like it happened after Cerebus took over Chrysler.

BaCkSeAtDrIVeR · 10th June 2009, 22:24

Just as was logging out of Tbhp.

Fiat to purchase Chrysler's assets. I caught the news on news.google.com. The news is okay'ed by the US supreme court too.

Here are some links:-

http://www.nytimes.com/2009/06/11/bu...33a&ei=5087%0A

Article - WSJ.com

Chrysler-Fiat Finalize Accord - BusinessWeek

Will the fiat bashing on this forum stop now?

Time for me to sleep.

Oh. There is a thread, it seems - http://www.team-bhp.com/forum/intern...announced.html

lamborghini · 11th June 2009, 02:15

There was a delay in the plans, as the Supreme Court had put a stay on the deal till all the appeals were heard. This led to Fiat saying that they want to finalize the deal soon or else they will call it off.
And even Chrysler wanted to finalize the deal as everyday put them deeper into debt.

Good thing it is finally announced.

Here's a link: Fiat Closes Deal With Chrysler - WSJ.com

Some interesting points from the article:

Among the most immediate tasks the company must tackle is restarting its plants and getting the launch of several new vehicles back on schedule after Chrysler shut down almost all of its operations during the nearly six weeks since it filed for bankruptcy protection.

The new models on the way include a redesigned Jeep Grand Cherokee, which originally was due to debut in April 2010 as a 2011 model. Chrysler told the U.S. Bankruptcy Court in Manhattan that "critical testing" of the Grand Cherokee would "cease completely" while the company was in Chapter 11 and its launch would be jeopardized. An updated Dodge Charger sedan is also supposed to roll out in September 2010.

The U.S. government has given Chrysler $9 billion in financial aid and owns a 8% stake in the revamped company. Fiat owns a 20% stake, while 55% belongs to the United Auto Workers union's retiree health-care trust.

Fiat's stake could increase to 35% if the new company meets benchmarks intended to insure the development of fuel-efficient vehicles in the U.S., and it has the option to become the majority stakeholder once U.S. loans have been repaid. Fiat will contribute to Chrysler technology, platforms and powertrains for small- and medium-sized cars.

Mr. Marchionne replaces Robert Nardelli, the CEO who was brought in by Cerberus Capital Management LP, the private equity firm that was Chrysler's majority owner from August 2007 until Wednesday.

The change at the top was confirmed along with a series of other management changes. Jim Press, the former Totyota Motor Corp. executive who was also brought in by Cerberus, will have the new title of deputy CEO, and will oversee the company's three automotive brands: Chrysler, Jeep and Dodge.

As previously announced, Robert Kidder, the lead independent director at Morgan Stanley, is chairman of Chrysler's new board of directors.

Mods, Please merge this with the other thread.

Nitin · 11th June 2009, 02:30

An interesting combo this will be. I wasn't aware of the fact that Canada owned 2% of Chrysler.
An updated Charger? Hmm..lets see how that turns out.

mohit · 11th June 2009, 03:12

Quote:

Originally Posted by Nitin

An interesting combo this will be. I wasn't aware of the fact that Canada owned 2% of Chrysler.
An updated Charger? Hmm..lets see how that turns out.

Seriously man... hurts to see some of the cars knowing I actually own some fraction of it

But yeah what remains to be seen is how Fiat makes use of this opportunity. Its not exactly a great time for launching a new car (let alone a whole brand) anywhere in the world.

BaCkSeAtDrIVeR · 11th June 2009, 18:35

I seems that chapter 11 is not the end, as we understand "bankruptcy" in India. Chapter 11 enables corporaties to rearrange, restructure and or otherwise work out ways to rehab their business.

Corporate Bankruptcy

vipul_singh · 6th June 2011, 16:40

Came across these news articles. Apparantly, FIAT has been able to meet the performance clauses laid out by the US Government and has subsequently upped the stake to 52% by paying $500M to the Treasury.

It is a truly historic day for both FIAT and Chrysler!

UPDATE 2-U.S. to sell remaining Chrysler stake to Fiat | Reuters
Obama's economic panel applauds GM, Chrysler resurgence - USATODAY.com
The Chrysler Miracle - Newsweek

Requesting mods to edit the title to reflect the latest status

volkman10 · 2nd January 2014, 13:12

Fiat agrees to buy remaining Chrysler stake in $4.35 billion deal.

Quote:

Fiat said Wednesday it had signed an agreement to buy the remaining 41.46 percent stake it does not own in Chrysler Group from the UAW's VEBA Trust, the last step needed before the Italian and U.S. carmakers can merge.

The deal is expected to close on or before Jan. 20, Fiat said.

http://www.autonews.com/article/2014...#axzz2pDzJICxu

srishiva · 3rd January 2014, 12:37

According to NY Times, the combined companies have a debt of 10 billion euros and is expected to make it difficult for new investment to grow. They need to partner with either Mazda or Suzuki to grow in Asia which is vital since outside of Italy they have only 2 percent of market in Europe.

A Mazda alliance might bring very good cars to India

20th March 2009, 17:37	#46
Mpower Senior - BHPian Join Date: Mar 2005 Location: Bangalore Posts: 10,409 Thanked: 1,729 Times View My Garage	Hey maybe they'll throw the TATA Xenon in there with a petrol engine for uSA. after all Ratan Tata sits on Fiat's board.
	() Thanks

30th April 2009, 21:35	#47
vivekiny2k Senior - BHPian Join Date: Feb 2005 Location: cincinnati, jabalpur,chennai Posts: 1,264 Thanked: 209 Times View My Garage	Chrysler to File Bankruptcy - BusinessWeek
	() Thanks

19th May 2009, 14:54	#48
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,497 Thanked: 300,309 Times View My Garage	An interesting take on Fiat's marriage with Chrysler : Linky
	() Thanks

1st June 2009, 04:56	#49
lamborghini Distinguished - BHPian Join Date: Apr 2004 Location: Mumbai Posts: 6,112 Thanked: 5,760 Times View My Garage	Just to update this thread: Some things I have noticed during my stay in the U.S: - Hatchbacks are quite popular. The 500 will be a nice cheaper alternative to the Cooper and Beetle admirers. Also, the golf is doing quite well and Fiat should think of launching the GP here as well. - Diesel technology is catching up, with Mercedes, BMW, VW all offering diesel options with their cars. Gas prices are rising. As of today, I paid $2.70 for gas v/s $2.30 a month ago.
	() Thanks

1st June 2009, 08:22	#50
raveen_2023 BHPian Join Date: Nov 2008 Location: Hamden Posts: 120 Thanked: 55 Times View My Garage	I think Fiat would benefit more from this venture than chrysler, because hatch back sales are negligible in US compared to sedans, even with higher gas prices.
	() Thanks

1st June 2009, 09:42	#51
lamborghini Distinguished - BHPian Join Date: Apr 2004 Location: Mumbai Posts: 6,112 Thanked: 5,760 Times View My Garage	Here's a question, a rather stupid one, but one which I find extremely confusing: Is Fiat merging with Chrysler, or acquiring Chrysler or is this a J.V. like with Tata?
	() Thanks

1st June 2009, 10:38	#52
amit Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 3,717 Thanked: 449 Times	Isn't Fiat out of the picture now? I have been reading about some deal reached between the German government and Canadian parts maker Magna alongwith some Russian company. I somehow think Fiat would have been a better option since they are car makers and understand the European market very well. Fiat-Opel have also been invovled in developing cars together, the new Corsa being made on the Grande Punto platform and they also share the MJD engines in their cars. I am not sure how Magna and the Russian company will resurrect Opel. Hopefully, Opel wouldn't be on the block again in a few months from now like it happened after Cerebus took over Chrysler. Last edited by amit : 1st June 2009 at 10:39.
	() Thanks

10th June 2009, 22:24	#53
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	Fiat buys Chrysler Just as was logging out of Tbhp. Fiat to purchase Chrysler's assets. I caught the news on news.google.com. The news is okay'ed by the US supreme court too. Here are some links:- http://www.nytimes.com/2009/06/11/bu...33a&ei=5087%0A Article - WSJ.com Chrysler-Fiat Finalize Accord - BusinessWeek Will the fiat bashing on this forum stop now? Time for me to sleep. Oh. There is a thread, it seems - http://www.team-bhp.com/forum/intern...announced.html Last edited by BaCkSeAtDrIVeR : 10th June 2009 at 22:25.
	() Thanks

11th June 2009, 02:15	#54
lamborghini Distinguished - BHPian Join Date: Apr 2004 Location: Mumbai Posts: 6,112 Thanked: 5,760 Times View My Garage	There was a delay in the plans, as the Supreme Court had put a stay on the deal till all the appeals were heard. This led to Fiat saying that they want to finalize the deal soon or else they will call it off. And even Chrysler wanted to finalize the deal as everyday put them deeper into debt. Good thing it is finally announced. Here's a link: Fiat Closes Deal With Chrysler - WSJ.com Some interesting points from the article: Among the most immediate tasks the company must tackle is restarting its plants and getting the launch of several new vehicles back on schedule after Chrysler shut down almost all of its operations during the nearly six weeks since it filed for bankruptcy protection. The new models on the way include a redesigned Jeep Grand Cherokee, which originally was due to debut in April 2010 as a 2011 model. Chrysler told the U.S. Bankruptcy Court in Manhattan that "critical testing" of the Grand Cherokee would "cease completely" while the company was in Chapter 11 and its launch would be jeopardized. An updated Dodge Charger sedan is also supposed to roll out in September 2010. The U.S. government has given Chrysler $9 billion in financial aid and owns a 8% stake in the revamped company. Fiat owns a 20% stake, while 55% belongs to the United Auto Workers union's retiree health-care trust. Fiat's stake could increase to 35% if the new company meets benchmarks intended to insure the development of fuel-efficient vehicles in the U.S., and it has the option to become the majority stakeholder once U.S. loans have been repaid. Fiat will contribute to Chrysler technology, platforms and powertrains for small- and medium-sized cars. Mr. Marchionne replaces Robert Nardelli, the CEO who was brought in by Cerberus Capital Management LP, the private equity firm that was Chrysler's majority owner from August 2007 until Wednesday. The change at the top was confirmed along with a series of other management changes. Jim Press, the former Totyota Motor Corp. executive who was also brought in by Cerberus, will have the new title of deputy CEO, and will oversee the company's three automotive brands: Chrysler, Jeep and Dodge. As previously announced, Robert Kidder, the lead independent director at Morgan Stanley, is chairman of Chrysler's new board of directors. Mods, Please merge this with the other thread.
	() Thanks

11th June 2009, 02:30	#55
Nitin Senior - BHPian Join Date: May 2006 Location: Houston, Texas Posts: 3,294 Thanked: 20 Times View My Garage	An interesting combo this will be. I wasn't aware of the fact that Canada owned 2% of Chrysler. An updated Charger? Hmm..lets see how that turns out.
	() Thanks

11th June 2009, 18:35	#57
BaCkSeAtDrIVeR BANNED Join Date: Jun 2007 Location: Kochi Posts: 2,522 Thanked: 752 Times	I seems that chapter 11 is not the end, as we understand "bankruptcy" in India. Chapter 11 enables corporaties to rearrange, restructure and or otherwise work out ways to rehab their business. Corporate Bankruptcy
	() Thanks

6th June 2011, 16:40	#58
vipul_singh BHPian Join Date: Sep 2005 Location: BLR / Lucknow Posts: 595 Thanked: 833 Times View My Garage	FIAT in full control at Chrysler. Now at 52%! Came across these news articles. Apparantly, FIAT has been able to meet the performance clauses laid out by the US Government and has subsequently upped the stake to 52% by paying $500M to the Treasury. It is a truly historic day for both FIAT and Chrysler! UPDATE 2-U.S. to sell remaining Chrysler stake to Fiat \| Reuters Obama's economic panel applauds GM, Chrysler resurgence - USATODAY.com The Chrysler Miracle - Newsweek Requesting mods to edit the title to reflect the latest status
	(2) Thanks

3rd January 2014, 12:37	#60
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	Re: Fiat & Chrysler in partnership talks! EDIT: FIAT increased stake in Chrysler to 5 According to NY Times, the combined companies have a debt of 10 billion euros and is expected to make it difficult for new investment to grow. They need to partner with either Mazda or Suzuki to grow in Asia which is vital since outside of Italy they have only 2 percent of market in Europe. A Mazda alliance might bring very good cars to India
	() Thanks