Looks like the administration did some nudging here. Hope Chrysler survives as well as GM.
Fiat isn't the Fiat of the days when they exported to the U.S.. The Italian brand has improved steadily in quality, and has some very interesting, fuel sipping models that look like the Chrysler dealer network will most likely carry as well as some Chrysler/Dodge Fiat platformed econo cars.
Quote: DETROIT (Reuters) – Chrysler LLC has reached an agreement on a framework of a global alliance with Italian automaker Fiat SpA (FIA.MI) that has the support of the U.S. Treasury, Chrysler's CEO Bob Nardelli said on Monday.
"We appreciate the willingness of the (autos) Task Force, along with industry and financial experts, to consult closely with us in order to achieve this significant step," Nardelli said in a statement.
Chrysler, owned by private equity Cerberus Capital Management, was deemed by the task force to be not viable as a stand-alone company and was given 30 days to complete an alliance with Fiat or be cut off from U.S. government funding.
If Chrysler can complete an alliance with Fiat and cost-saving arrangements with creditors and its major union, the U.S. Treasury would consider investing up to another $6 billion.
The boards of Chrysler and Fiat have given executives approval to complete an alliance that now hinges on the terms for additional aid for Chrysler, people with knowledge of the discussions have said.
Nardelli said that Chrysler has had a series constructive discussions, including weekly face-to-face meetings with the U.S. auto task force.
"I want to personally assure all of our customers, dealers, suppliers and employees that Chrysler will operate 'business as usual' over the next 30 days," he said.
(Reporting by Poornima Gupta; Editing by Toni Reinhold)
Regards, Eightballsidepocket
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"If you can't say it in person, it isn't worth saying while hiding behind an anonymous P.C.!"
I am a person whose vehicle stable consists of Ford products, a company which did not ask for or receive a bailout, I do resent my children being saddled with more government debt to bail out a company the government deemed "too big to fail".
Horse manure. As a small businessperson, no one is bailing me or the DW out.
At least the feds are telling the upper management of both GM and Chrysler that their 'services' are no longer required. But you can bet the golden parachutes will be blooming.
This whole bailout mess makes me want to puke.
Richard Lawrence Ray Laura Lee Ray Amateur Radio W4RLR 2005 Ford F-250 Lariat Crew Cab "The Blue Beast" towing
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rray32539 wrote: I am a person whose vehicle stable consists of Ford products, a company which did not ask for or receive a bailout, I do resent my children being saddled with more government debt to bail out a company the government deemed "too big to fail".
Horse manure. As a small businessperson, no one is bailing me or the DW out.
At least the feds are telling the upper management of both GM and Chrysler that their 'services' are no longer required. But you can bet the golden parachutes will be blooming.
This whole bailout mess makes me want to puke.
LOL! Ford has not asked for it yet but their day is coming!
FYI: There are no golden parachutes at Chrysler since every management employee from manager to CEO recently all signed an agreement to eliminate such things for good. One of the reasons why Obama hasn't gone after any of them. As far as bailouts are concerned what about the billions we've given AIG without any questions asked? Or all the banks? Jeeze we give the auto companies some money to save real American jobs and everyone is pissed. The banks get off scot free. Don't make no sense....
Test & System Engineer (Thermal Systems incl. towing, Detroit 3) 2003 Damon Challenger 348 Class A - F53 Triton V10
Quote: I am a person whose vehicle stable consists of Ford products, a company which did not ask for or receive a bailout, I do resent my children being saddled with more government debt to bail out a company the government deemed "too big to fail".
Horse manure. As a small businessperson, no one is bailing me or the DW out.
At least the feds are telling the upper management of both GM and Chrysler that their 'services' are no longer required. But you can bet the golden parachutes will be blooming.
This whole bailout mess makes me want to puke.
All the car companies are going to pay back the money(if they survive)
Chrysler and Gm will owe the goverment and ford has borrowed billions from banks. If they go through that they will be looking at the gov also..assuming they survive also.
They are ALL losing billions..
Robert
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wikipedia wrote: The common rail system prototype was developed in the late 1960s by Robert Huber of Switzerland and the technology further developed by Dr. Marco Ganser at the Swiss Federal Institute of Technology in Zurich, later of Ganser-Hydromag AG (est.1995) in Oberägeri. In the mid-1990s Dr. Shohei Itoh and Masahiko Miyaki of the Denso Corporation, a Japanese automotive parts manufacturer, developed the common rail fuel system for heavy duty vehicles and turned it into practical use on their ECD-U2 common-rail system mounted on the Hino Rising Ranger truck and sold for general use in 1995. Denso claims the first commercial high pressure common rail system in 1995.
Modern common rail systems, whilst working on the same principle, are governed by an engine control unit (ECU) which opens each injector electronically rather than mechanically. This was extensively prototyped in the 1990s with collaboration between Magneti Marelli, Centro Ricerche Fiat and Elasis. After research and development by the Fiat Group the design was acquired by the German company Robert Bosch GmbH for completion of development and refinement for mass-production. In hindsight the sale appeared to be a tactical error for Fiat as the new technology proved to be highly profitable. The company had little choice but to sell, however, as it was in a poor financial state at the time and lacked the resources to complete development on its own. In 1997 they extended its use for passenger cars. The first passenger car that used the common rail system was the 1997 model Alfa Romeo 156 1.9 JTD, and later on that same year Mercedes-Benz C 220 CDI.
Common rail engines have been used in marine and locomotive applications for some time. The Cooper-Bessemer GN-8 (circa 1942) is an example of a hydraulically operated common rail diesel engine, also known as a modified common rail.
The engines are suitable for all types of road cars with diesel engines, ranging from city cars such as the Fiat Nuova Panda to executive cars such as the Volvo S80.
GM, and Chrysler will be required to pay back the govt loans. They are not getting a true bailout in the sense that a gift from the taxpayers has been given to them.
While we are on that subject, does anyone know what the interest is on the govt loans to GM, and Chrysler are compared to the private loans ford secured?
Daimler spent a boat load of money on Chrysler, and ultimately gave it away to Cerberus Capital, in what appears to be a "just get rid of it" sale.
The Fiat shareholders need to be asking, what does Chrysler bring to the table. I certainly don't see anything of value to the auto industry other than the Jeep brand.
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