Fiat Gets $35 Million Insurance on Its $0 Chrysler Investment
Published: May 5th, 2009
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How does Marchionne do it? Having paid precisely bupkis for a reorganized “allegedly good Chrysler,” the Fiat CEO is now set to earn his firm $35 million if the deal doesn’t go through. In court filings (via DetN), Chrysler has requested the break-up fee with the following mystifying justification. “Fiat appropriately is the recipient of the proposed breakup because it has pursued and funded all aspects of the Fiat transaction on behalf of purchaser and has itself agreed to substantial commitments for the use of its technology, platforms and distribution network in support of the Fiat transaction and the Fiat alliance.” While taxpayers take an $8B+ bath no matter what. Huh?
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I took I gander at Fiat's website, and I really don't see anything that would sell over here. They're taking the feds for a ride.
kowsnofskia : So why didn’t we shut down this monstrosity when we had the chance, again? I don't suppose it has anything to do with the campaign donations and votes bought from the UAW? DEZ PS this is not a slam of the present administration. BOTH candidates made promises to the UAW when they campaigned in Michigan. IMO this scenario would have played out regardless of presidential victor.
"The Mafia could learn from these guys" I am sure that in Italian business, there is little difference between the Mafia and legitimate businesses. They work closely together.
DrivnEZ-- A Republican would bail them out because he'd be in hock to the suits rather than labor, I think.