Why Fiat Wants Chrysler
March 13, 2010 – 1:16 pm
It is simple. This is a sweet deal for both Fiat and Chrysler Corporation. Chrysler had an option to file for the bankruptcy or to confirm the deal with Italian automaker Fiat.
From this deal Chrysler Corporation will get Fiat models, Fiat technology and Fiat platforms. From the other side Fiat will get 20% share in Chrysler.
One of the automakers which show a best performance in the troubled times and the last big recession is Fiat. This was easy for Fiat because Fiat, just before the crises launch more than a fifteen new car models and most of them in the low segment. Simply the clients and customers which were planning a big car, hit by recession choose to buy a smaller but yet new Fiat car.
Chrysler will get not just cars and technology but also a management services, business cooperation, know how and famous Fiat corporative experience. In exchange for all this, Fiat will get 20% stake in the company and later even 35%. The later percentage will depends of the production of the Chrysler fuel efficient vehicles based on the Fiat technology.
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Tags: corporate