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Fiat and Chrysler get in to bed together

Tue, 20 Jan 2009

Before Christmas the CEO of Fiat was reported as saying that he believed that the current malaise in the car market (and any other market, for that matter) would result in the rationalisation of the industry, and see just a handful of big players come out the other side. His words now seem prescient, as it has been announced today that Fiat and Chrysler have effectively entered in to a partnership.

Fiat takes a 35% stake in Chrysler

The partnership, with Fiat taking 35% of Chrysler, means a number of benefits for both companies. Chrysler will get a great deal of help from Fiat in prising money out of the US government. After all, Fiat has a long history of achieving the same with the Italian Government.

On the manufacturing front, the deal gives Chrysler a quick route to cheap, fuel-efficient cars for the US market, something it badly needs. In exchange, Fiat will get a back door route to an American market it has very little presence in.

It’s also said that Chrysler will use the Fiat network in Europe to market its cars. Hmm. The PT Cruiser is dead, the 300CE is probably selling all it ever will over here, the Aspen and the Town & Country haven’t a chance, and as for the Sebring… the sooner it’s put out of its misery the better! And I just can’t see a Fiat Aspen or an Alfa Romeo Sebring doing business either!

Methinks Fiat should do better out of this than Chrysler.


By Cars UK