January 20, 2009 : Last updated 08:54 am Home > Worldhotnews > Report: Fiat eyeing lion's share stick in Chrysler Report: Fiat eyeing the greater part paling in Chrysler New York/Rome - Italian carmaker Fiat is eyeing a mass risk in ailing US fabricator Chrysler, with a 35-per-cent ownership by mid-year as the first off step, The Wall Street Journal reported Monday. The Journal, citing consumers chummy with the talks, reported that Fiat could secure up to 55 per cent of the flock over time. An deal could be unveiled as soon as Tuesday, the newspaper said. Such a influence would be the modern development in Chrysler's revolving fortunes, after German-based Daimler sold 80 per cent of Chrysler to the retired investment company, Cerberus Capital Management, in 2007. Daimler has been looking to vend its left 20-per-cent pillar to Cerberus, but the two have not been able to see eye to eye on a price.
Earlier, efforts to promote a "strategic partnership" between Fiat and Chrysler were reported by both the Journal and the line munitions dump Automotive News. Chrysler has not confirmed the details. The deal would give Fiat long-sought access to the US customer base for its niggardly and mid-sized cars, with the Fiat 500 and Alfa Romeo reported to be at the finish of the list, The Wall Street Journal reported earlier from Rome. Under the deal, Fiat could set up its own young cars in the US and use the Chrysler sharing network.
In exchange, Chrysler would listening device Fiat's mastery edifice flat and medium-sized cars to forward its own plans for new, front-wheel-drive models with farther down emissions. As gas prices soared and the conservation stalled, sales of Chrysler's mostly large, fuel-inefficient cars and trucks level 30 per cent in 2008. With auto sales at a 27-year low, Chrysler has laid off tens of thousands of workers and had to plead for direction liberating financing of 5.5 billion dollars just to prevent afloat for the next few months.
The advance terms ask Chrysler to make over a credible survival master plan by March, and an combination with Fiat would be a real revitalized strategy. Fiat, which exclusively makes wee cars with pinched further margins, is struggling to nurture its own belfry above spa water in Europe's precious laboriousness market.
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