Bailout Watch 517: Fiat CEO Sergio Marchionne's Official Statement On Chrysler Alliance

Edward Niedermeyer
by Edward Niedermeyer

“This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole. Bringing together Fiat’s world-class technology, platforms and power-trains for small and medium sized cars, and its extensive distribution network in Latin America and Europe with Chrysler’s rich heritage, strong North American presence and talented and dedicated workforce will create a powerful new automotive company, while helping preserve jobs and a manufacturing industry that is critically important to the U.S. and Canadian economies.”

“Our goal since we first entered discussions with Chrysler nearly a year ago was to leverage the strengths of both companies to yield the scale, efficiencies and cost savings necessary to create two stronger automakers able to compete more effectively on a global scale. This transaction is an important step toward achieving this objective.

Our work is just beginning, but together with our new partners at Chrysler we look forward to delivering on the vast potential this alliance holds and reintroducing to North American customers of some of our most popular brands, including Alfa Romeo and the award-winning Cinquecento.

We would not be here to announce this agreement were it not for the tireless dedication, focus and creativity of the US Automotive Task Force and their Canadian colleagues. As we worked our way through the myriad of obstacles and issues that arise in transactions such as these, they never lost faith in the project. Through this transaction, they have created the conditions for the reestablishment of Chrysler as a viable long-term participant in the automotive market.

Organized labor unions on both sides of the border have also made significant contributions in accepting reductions in benefits and equity in satisfaction of some of their claims. I would like to thank the leadership of both the United Auto Workers and the Canadian Auto Workers unions for all they have done and for constructively participating in our shared challenge of recreating a great Chrysler.

Over the coming weeks and months, I will be spending a great deal of time meeting with Chrysler employees and touring its facilities. While our agreement must necessarily go through the U.S. legal system for a few weeks, we will be preparing ourselves to reemerge quickly as a reliable and competitive automaker. I believe Chrysler can meet the challenges posed by today’s difficult market conditions by tapping back into its innovative spirit, by focusing on quality as a cornerstone of its product offering and by listening to its customers and delivering the cars they want. It is a model we have strictly adhered to in the past few years at Fiat, and one I believe we can adapt here to write the next chapter in Chrysler’s legacy.

The transaction which we have just finalized represents an historic moment for both Fiat and Italian industry. It is a significant step toward building a new and solid foundation for the future.

Today is also a day of great satisfaction for all women and men at Fiat. The fact that Fiat’s know-how has been appreciated at the most senior levels of the US and Canadian administration – to whom I express gratitude on behalf of our Group’s entire management team – is a source of significant motivation for the work ahead of us.

We are certain that a stronger and more international Fiat will emerge from this alliance, with an even greater capacity to compete in markets worldwide.”

Edward Niedermeyer
Edward Niedermeyer

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  • P00ch P00ch on May 01, 2009

    I can't argue with the comments above but seriously, isn't a part of you happy that MINI may soon be facing competition from the Fiasler 500?

  • Akear Akear on May 01, 2009

    I would be surprised if Chrysler could even sell 40,000 5000s a year. It looks all wrong for the US market.

  • Kwik_Shift_Pro4X Funny comparison:
  • Kwik_Shift_Pro4X Some insight.
  • Amwhalbi I know this is apples and oranges, but I'd rather have an Elantra N, a Jetta GLI or a Civic Si than either the Mustang or the Z.
  • Scott Miata for the win.
  • Kwik_Shift_Pro4X On a list of things to spend my time and money on, doing an EV conversion on a used car is about ten millionth.