Fiat Gets A Deal On Chrysler: Majority For $1.27 Billion
In a few months, Fiat will own 46 percent of Chrysler, Fiat announced today in Turin. With another 5 percent milestone reached by the end of the year, Fiat will have the 51 percent majority in Chrysler. According to Germany’s Automobilwoche [sub], the 46 percent level will be reached after Chrysler has paid back the government loans. Payment of the loans is expected for the second quarter of 2011.
According to Automotive News [sub], Fiat has agreed to pay $1.27 billion for the 16 percent stake in Chrysler. The deal turned out to be a little cheaper than the $1.5 billion expected last week.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Can anyone explain to me how a car company that was bleeding money and had no new designs can now possibly be viable..?
easy. quick rinse thru BK combined with a union leadership prostituting itself by crawling into bed for millions in VEBA admin fees. add in a gov't passing out more money in the name of plant modernizations and there you have it. trouble is the turniquets and bandaids haven't repaired the source of the bleeding...incompetent marketing management.
'Imported from Detroit' but owned and controlled from Italy. Chrysler can laugh off the incongruity of their domestic chest thumping with a TV spot featuring Lido Iacocca making some Italian-American quip.
"The deal turned out to be a little cheaper than the $1.5 billion expected last week." Wow - whocoodanode? I am shocked! ... almost as shocked as I will be to learn that not one dime of that $1.27 billion - or any of the remaining cash to gobble up Chrysler will actually come out of Fiat's pocket. Like GM, when corporate welfare puppy Fiat says "We give you your money back" they really mean it.