California Autos Examiner

Monday, March 16, 2009

Obama Team: Approval of Fiat/Chrysler Deal Still Being Mulled

In my opinion, Fiat is Chrysler's "Great Italian Hope" for a semi-independent future. Starved of any real, competitive smaller cars, Chrysler simply doesn't stand a chance on its own. While the terms of the Italian deal aren't ideal, there aren't any other serious offers out there.

If the Obama team nixes support for the Fiat deal, there is a chance that the Italians might come back with a juicier offer or they could just wait until Chrysler keels over and the proceed to pick at its bones. Let's face it, there are other ways to crack the U.S. market. For example, Saturn presents a nearly turnkey operation for a company looking to setup shop here. Need manufacturing capacity in North America? You can easily acquire that from any number of sources.

Given that Chrysler has such a weak bargaining position and really no chance to stand on its own, Obama's team would be well-advised to think long and hard about Fiat.

source: Obama auto team still undecided on Chrysler-Fiat deal The Detroit News


David Moll said...

My inner cynic says the auto task force will fail to see the big picture and Fiat will end up scavenging off Chrysler's carcass at discount prices.

But I sincerely hope I'm wrong.

solerso said...

its a done deal.