Chrysler Expects Fiat Pact to Proceed – WSJ
According to The Wall Street Journal (a publication that knows a thing or two about business) Chrysler LLC expects their joining with Fiat to proceed in the near future – or are they saying this just to calm President Obama & the rest of America’s Auto Industry? Chrysler doesn’t see why the merger would not go through…doesn’t sound very solid to us. Check out the WSJ report below.
From WSJ.com:
NEW YORK — Chrysler LLC doesn’t see “any reason” the company’s proposed partnership with Italy’s Fiat SpA will not happen, Vice Chairman Jim Press said on Wednesday.
In an interview at the New York auto show, Mr. Press added that Chrysler is making progress daily on finalizing a deal with Fiat, and said the two companies are a good fit for each other.
“Imagine the scope of our product line,” Mr. Press said, referring to Fiat’s line of small cars and Chrysler’s larger vehicles. “We’re going to from viable to formidable,” he said.
The federal government has given Chrysler until May 1 to sign a binding agreement with Fiat. Despite Chrysler’s financial difficulties, Mr. Press said, “We don’t see any reason why it’s not going to happen.”
The Obama administration determined last month that Chrysler is not viable as a stand-alone entity. The administration, along with the Treasury Department, did not rule out the possibility of a “surgical” bankruptcy aimed at restructuring the company.
At the New York show, Mr. Press showcased a mini Fiat 500 car at the unveiling of the 2011 Jeep Grand Cherokee. He said displaying the iconic vehicles alongside each other was a sign of how close the two companies are to closing in on a deal.
“It shows our confidence,” he said. “It shows how strong the alliance with Fiat could be.”
Mr. Press added that Chrysler Financial could receive more federal funding soon. Chrysler Financial, which operates as an independent company and is not controlled by Chrysler, was given a $1.5 billion federal loan to help it provide loans to auto buyers. That money is expected to run out sometime this month, according to people familiar with the matter.
Last month, Chrysler Financial confirmed it had requested more aid, but declined to specify the amount.
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