Fiat Gets 35% of Chrysler in Exchange for Small Fuel Efficient Cars
Chrysler and Fiat Tie the KnotChrysler hasn't been too competitive when it comes to small, fuel efficient cars. That might be about to change. Cerberus Capital Management, the owner of Chrysler, has entered a "global strategic alliance" with Fiat. The deal is pretty simple: 35% of Chrysler at no cost in exchange for access to your small car platforms.
Read on for more.From the press release:
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.
Indeed, this is good for Fiat because it can enter the big U.S. market more easily, and more quickly because Chrysler has a lot of manufacturing plants with free capacity.
Fiat's small cars are some of the most fuel-efficient in Europe, so this is good news for US citizens who have been frustrated by the lack of options when it comes to quality small cars. Hopefully within a few years most of the best fuel-efficient European cars will be available in the US via this partnership, but also from Ford (see the 63 MPG Fiesta) and GM.
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