Tuesday 4th January 2011

Fiat Boss: We Want Control Of Chrysler

CEO Sergio Marchionne hints that Fiat could take 51 per cent stake in US car maker

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Fiat CEO Sergio Marchionne has strongly hinted that the company wants to take a controlling stake in Chrysler this year.

Marchionne made the comments to reporters yesterday at the Milan stock exchange, when Fiat Industrial - recently spun-off from the group's automotive interests - made its first official listing.

"I think it is possible, don't know whether it is likely, but it is possible that we go over the 50 per cent if Chrysler decides to go to the market in 2011," said Marchionne. "There will be an advantage if that happens."

Fiat saved Chrysler from bankruptcy in 2009 by acquiring a 20 per cent stake in the American car maker. The Italian giant now has the option of purchasing another 15 per cent of the company when Chrysler begins building a small engine in the US, plus an additional 16 per cent once Chrysler has repaid government loans from the US and Canada.

This would potentially give Fiat 51 per cent of Chrysler, and exercising its options before Chrysler offers its shares publicly would be a move that analysts reckon could save Fiat up to £1.7bn.

But even if Fiat does take official control of Chrysler - it won't fully meld the two car companies. "A legal merger is not going to change our life," said Marchionne.

^{Pic: Dgtmedia - Simone}

[insideimsmiling]

Seems to make sense commercially & financially, but does chrysler fit in with fiat ?

[collos]

They effectively do own them without Fiat Chrysler would not exist anymore.

[errek72]

The guy is a bank manager (UBS) so financially and on paper it will make perfect sense. But what will it mean for the cars?
Daimler nearly hung themselves (remember the dip in quality when they were merging products with Chrysler?) trying the same.

As an Alfa enthousiast, worst case scenario : the merger happens and Alfa's become rebadged Chryslers. A fate worse than death.

Best case scenario : Fiat sells Alfa to get the cash to buy Chrysler. Alfa gets a new sugerdaddy and starts building sports saloons and luscious coupes again. Fiat gets swallowed by the Chrysler money pit. VW buys Ferrari. Alfa is the only Italian brand left in it's market sector on it's home and international market.

[Redlake27]

In Europe, Lancias will be rebadged Chryslers. The 300C will be the new Thema (largely unchanged) so there is a logic that the 166 replacement could use the same underpinnings. If it looks good, has an Alfa-esque engine, I'm Ok with that, as it will be RWD. Unless Alfa are sold to VW first...in which case I have high hopes for the brand, but I won't be buying one if it is as uninspiring as the A3/A4.

However, Lancia will not come to the UK, as there is no point investing in a brand relaunch. So Chrysler dealerships will get Chrysler badged Deltas to replace the Neon/Dodge Avenger.


However, this is the most shocking of them all, and it has already been launched in the USA


http://hubpages.com/hub/Revealed-2011-Jeep-Phoenix...

But thinking about it, it may just work. Jeep brand on something cute....could be an urban Mini rival. But if we are expecting Fiat to be sentimental about Alfa and Lancia, the Jeep Panda will help us manage our expectations!

[Maxwedge]

The reason MBs quality went down was just as much an issue of MB wanting to cut corners to make a profit than trying to save Chrysler. All the cars realeased by Chrysler...The Trucks, Viper Neon PT Cruiser were already mostly done in Development by the time MB had to foot the bill. the 300 and the Minivans were a majority of MBs "Investment". Oh and MB stole the 4th gen Viper Chassis for the SLS...