Chrysler Ghosn For Fiat?

Edward Niedermeyer
by Edward Niedermeyer
chrysler ghosn for fiat

Forbes is reporting that Chrysler and notorious industry-alliance slut Fiat are discussing terms of an agreement that could bring Fiat products back to America. Chrysler could lease North American production capacity and share retail space with the Italian automaker say enigmatic "people briefed on the talks." But Chrysler isn't in this just to have another competitor hocking its wares next door, luring the crowds away from Sebrings and Journeys. No, the Auburn Hills crowd has a cunning plan, and it involves Fiat's other, other squeeze: Tata Motors. Chrysler thinks the Wrangler would do well in India and other Asian markets, and talks with Tata are already underway. Since Fiat and Tata are becoming increasingly joined at the hip, Chrysler seems to be imagining a global triumvirate of second-tier automakers. Oh yes, and as one (again with the anonymity) investment banker puts it " "You could definitely see this evolve into something. It would make sense for Tata to buy Jeep if this partnership went through … and Chrysler could really do with selling a brand and getting some cash." So Fiat gets US market access, Chrysler gets a buyer for Jeep (and sweet, sweet cash), and Tata gets an armor-ready platform ( Wrangler J8) to sell to the Indian military. Meanwhile Fiat has, quite by coincidence, agreed to finance all of Tata's Jaguar and Land Rover sales in Europe. This is starting to get kinky.

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4 of 18 comments
  • Nutbags Nutbags on Aug 01, 2008

    Why would Tata want Jeep when they already have Land Rover? I had read somewhere that M&M was considered a front runner for purchasing JEEP with financing being the only issue.

  • Joeaverage Joeaverage on Aug 01, 2008

    Rust? Oh you must mean that 3 year old PT Cruiser the girl at the daycare we use drives. Heck nothing rusts that quickly in TN!

  • Stephdumas Stephdumas on Aug 03, 2008

    "You’re right. Don’t forget BMW’s alliance with Renault on I-4 engines, which replaced their alliance with Chrysler" Actually, their I4 engines aliance is with Peugeot-Citroen (unless BMW decided to switch partners in the meantime)

  • Undata Undata on Feb 03, 2009

    Merger shmerger, who cares, bottom line, will I be able to get a 500 or not? My comment in general about theses deals: You read alot of commentary about quality of Fiat based on history in the U.S. The weird thing about U.S. consumers, they will reject autos based on irrational criteria. People did not buy the Pacifica-Mercedes. Because the car was ridiculously big? No, I see people driving all kinds of ridiculous cars. All my cars last way over 10 years. My current car is a 1997 Volkswagen Passat Turbo Diesel (TDI), with only one big repair in 12 years, the injection pump. Still gets in mid-forties mpg. I also own a "Chevrolet" Aveo, which is a nice little Korean car. I have had it for four years now. It gets good gas mileage, the tires wear evenly, original battery, original brakes. When I hear people gripe about Fiat, I think they are the average dummy that doesn't have the slightest idea how what they're driving works. Or they are the gas-pedal stomping, brake slamming goons that make foreign automakers afraid to give us the same small engines everybody else uses.