Chrysler and Fiat Group Announce Global Strategic Alliance

[Code3TJ]

Auburn Hills, Mich., Apr 30, 2009 - Chrysler LLC today announced that, as a result of the comprehensive restructuring plan agreed to by many of its stakeholders, it has reached an agreement in principle to establish a global strategic alliance with Fiat SpA to form a vibrant new company. It will allow Chrysler and Fiat to fully optimize their respective manufacturing footprints and the global supplier base, while providing each with access to additional markets. Fiat powertrains and components will also be produced at Chrysler manufacturing sites.

"This partnership transforms Chrysler into a vibrant new company with a wealth of strategic advantages," said Bob Nardelli, Chairman and CEO of Chrysler. "It enables us to better serve our customers and dealers with a broader and more competitive line-up of environmentally friendly, fuel-efficient high-quality vehicles. Benefits to the new company include access to exciting products that complement our current portfolio, technology cooperation and stronger global distribution."

Chrysler initiated discussions with Fiat more than a year ago to develop plans for a global product alliance. Over the past several months, these discussions have evolved and expanded. Chrysler and many of its stakeholders worked tirelessly to agree upon concessions that will result in a significantly lower cost base and enable fulfillment of a broader strategic alliance.

"We want to personally assure everyone that the new company will produce and support quality vehicles under the Jeep®, Dodge and Chrysler brands as well as parts under the Mopar® brand. Chrysler employees will become employees of the new company. Chrysler dealerships remain open for business serving our customers. All vehicle warranties will be honored without interruption and consumers can continue to purchase our vehicles with complete confidence," explained Nardelli.

Despite substantial progress on many fronts, Chrysler was not able to obtain the necessary concessions from all of its lenders, which would have avoided the need for a bankruptcy proceeding. As a result, under the direction of the U.S. Treasury, Chrysler LLC and 24 of its wholly owned U.S. subsidiaries today filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of New York.

Full Article
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Nothing to see here.

[hutchman]

I wonder if they are going to be vibrant before or after Chrysler emerges from bankruptcy?

[ZJDAB]

Wish I was friends with Obama, he seems to get a lot of col things for his friends.

UAW
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96 ZJ-I6 / 89 YJ-I6
"Why do I have to press one for English?!
Welfare recipients should pass a drug test to get paid…"-TJ Apex

[hutchman]

Doesn't it seem ironic that he bails out the big insurance and investment companies, but allows the companies that employ his supporters to go bankrupt?

[ZJDAB]

Not ironic it is all part of the plan. I never met a politician that didnt lie.
_________________
96 ZJ-I6 / 89 YJ-I6
"Why do I have to press one for English?!
Welfare recipients should pass a drug test to get paid…"-TJ Apex

[hutchman]

After reviewing the deal further it appears the real winner is the UAW. They get 55% of the company. Chrysler is closing a number of plants, while stating the workers will be offered jobs at other locations. My guess is the average worker in St. Louis has no interest in moving his family and starting all over. The losers are the individual worker and investor.

Politics again shows how ugly it truly is. The Obama Administration continues to show that the only change they believe in is the change from campaign promises and rhetoric to business as usual in Washington. Will the American public learn anything from this mess.........?

['drack]

The 55% the UAW is getting is eventually supposed to be sold off and used for their legacy costs. As in the previous negotiated contract, the company and the union had agreed that UAW was going to oversee the management of these costs. From what I'm seeing, this is more or less just making sure that happens. These legacy costs are the pensions and benefits for all retirees and spouses...just in case anyone wasn't sure on that. So all in all, from what I take out of this, the UAW isn't walking away from this any better off than before it happened.
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Drink more Ovaltine!!!

[hutchman]

On the other hand........even though the UAW will "own" 55% of the company, they will only get one seat on the board and I believe they have only one now. They will not take control of the company.

Your evaluation is probably correct.

[TJ Apex]

One thing to keep in mind, is that the Gov. wants us to buy these small cars, that's why there so "pro" Fiat partnering with Chrysler. the Gov. doesn't listen to what we want or need, as usual.
We want trucks and SUV's, other wise we wouldn't get a thing done in this country.
I don't want a car that I have to spread Vaseline all over my body just to get in and out of a tiny car that will only carry a box of cereal, it's not going to happen. I for one do NOT want to drive around in a tuna can car, I have a hard enough time bringing groceries home in my TJ, let alone a car that only has 4 cubic inches of storage for what ever.
Point is, lets make what we have more fuel efficient, we have the technology to this. Hybrid is not ECO friendly, because the acid in the old batteries will catch up to us sooner that later, and methanol is a joke. Bio Diesel or Hydrogen is the way to go, I hope the Government will get the clue.
There are other problems we need to deal with.
Bio Diesel, Good for Jeeps….
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2002 Wrangler Apex
Why do I have to press one for English?!
Welfare recipients should pass a drug test to get paid…

02' Apex Edition,
2" BB, 31" BFG AT's

['drack]

[ZJDAB]