Tuesday 20th January 2009

Fiat and Chrysler to Enter Alliance

Giants from different continents come together to fight financial meltdown

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Fiat and Chrysler have released statements confirming that they are to create a 'global strategic alliance', which will involve Fiat taking a whopping 35% stake in Chrysler, in exchange for allowing the troubled American marque access to Fiat's efficiency technologies.

The move seems to suggest that Chrysler (and potentially the rest of the US 'big three') see innovation as the way out of their financial woes. Many analysts have blamed the companies' recent trouble on a lack of investment in new technology and innovation in recent years.

The deal will also mean that the two companies will have access to one another's distribution and supplier networks.

All of this comes in the wake of Fiat's success over the past several years, with cars like the Panda, Grande Punto and the recent 500 managing to rescue the once-troubled brand. But success has brought new demands to Fiat, and they have been seeking a partner with whom to go forward.

This strange marriage wont be finalised until various regulatory authorities have checked that all the boxes have been ticked, but at this time it looks set to go ahead.

[LewisR]

Only seems like 2 minutes ago that it was GM Fiat, wasn't it?

[3Dom]

I guess Fiat have been trying to 'break America' for some time now, so this will be a nice way in for a re-launch of the Fiat-Alfa brand state side.

[infradig]

The funniest part of this is that the supply and dealer network can now work together-the absolute worst dealers I've ever experienced were a Fiat one and a Chrysler one,together they should be awesome. Although a 300C based on the next rwd large platform(166/Quatroporte/Big Lancia)should be nice.

[danp]

I love the quote on the BBC website that "Under the terms of the deal, Fiat will get a 35% stake in Chrysler. In return, the US firm will get access to Fiat's fuel-efficient vehicle technologies."

Panda engines in the Viper?

[B10]

I wonder what Ford think given the sharing of teh 500 platform to make the Ka?
How about a Hillman Imp based upon the 500 / Panda platform with a Warsaw-Climax engine?

[Motown Junk]

[redacted]

[anonymous-user]

[redacted]

[Bada Bing!]

Yay, double the build quality!

[DrGP]

mm, well both marks build "good looking" or at least "unique" cars.
Not sure about their service record or build quality though. And I guess they are not helping too much with each others pension overhead or OEM over capacity - though it could shut a few dealers. Hope this works better than recent tie-ins [Daimler Chrysler/GM Fiat/ Ford and every EU luxury brand]

[Pepper01]

Fiat always used to have a bad name, we have a 2005 Punto and a brand new Grande Punto both of which are superb and relaible. Lets not forget that Alfa Romeo come under the Fiat group and having had 2 x 147's, a 156 diesel and a 159 diesel people need to forget the past and judge on their current merits.
Chrysler needs a leg up and we have to accept that big gas guzzlers are being taxed out of the market (thanks Gordon) so perhaps the USA have finally come out of the 20th century to join the 21st century and it's current technology !!

[chazwozza]

Viper engined panda?? Or am I being silly...

[GTRene]

chazwozza said:

Viper engined panda?? Or am I being silly...

Or RWD Fiats... its about time they do that again.

[GTRene]

Or a new baby like they had long time ago...with a big Chrysler V8..

http://www.philseed.com/fiat-otto-vu.html

Edited by GTRene on Tuesday 20th January 22:36

[tgx4776]

sorry to burst y'alls bubble but as the rumor has it here in the states this is the vipers last year.

should be an interesting partnership though.

[Marquis_Rex]

May be Fiat could learn something about engines from Chrysler

[focus man]

Fiat developed the chassis and engines for the 500 and Panda with no input from Ford, they asked Fiat if they could develop a version of the chassis for the Ford Ka very late on in the design stage. A very similar thing happened with the new Vauxall Corsa which uses a lot of the grande Punto in its chassis.

correction,ford did a lot of work with the fiat suspension set up for the ka,so much so that all the reviews say the ka rides and handles better than the 500,fiat were so impressed by the ka set up they have used it for the 500 arbath....true.

[f111lover]

Oh dear, the turd of Europe hand in hand with the turd of the USA, I fear what will be the result.

[skylinestyle]

chazwozza said:

Viper engined panda?? Or am I being silly...

Yes you are being silly Viper is made buy dodge duh so bck 2 the topic so fiat is going 2 break america GO ON SON !!!!

[jamesson]

skylinestyle said:

chazwozza said:

Viper engined panda?? Or am I being silly...

Yes you are being silly Viper is made buy dodge duh so bck 2 the topic so fiat is going 2 break america GO ON SON !!!!

Dodge being a brand name of Chrysler, which is the parent company.

Who gets the "duh" now then?

[BlueSei]

f111lover said:

Oh dear, the turd of Europe hand in hand with the turd of the USA, I fear what will be the result.

And what do you drive? A souless piece of Teutonic Engineering?