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Fiat and Chrysler - the birth of an automotive behemouth

geese

geese

macrumors 6502a
Original poster
Oct 23, 2003
525
0
London, UK
Thought I'd throw this here, could save Chrysler's ass:

Fiat and Chrysler create alliance

Italian carmaker Fiat and US giant Chrysler have agreed to create a global strategic alliance, the companies said in a statement.

Under the terms of the deal, Fiat will get a 35% stake in the troubled US firm in return for access to its fuel-efficient vehicle technologies.

Fiat would also be able to improve its presence in the US market.

Chrysler is one of two Detroit-based carmakers to have received emergency US government loans.

The $4bn (£2.7bn) emergency aid from the US government was given in a deal to help Chrysler stay in business.

The two companies' statement said Fiat would provide Chrysler with "substantial cost saving opportunities".

"Fiat has been very successful in executing its own restructuring over the past several years," the statement said.

Earlier on Tuesday, trading in Fiat shares was suspended amid speculation of a possible partnership with the US firm.

"We have been in talks about this for some time," John Elkann, a member of Fiat's founding Agnelli family, told Italian reporters.

Also on Tuesday, German carmaker Daimler said it was still interested in selling its 20% stake in Chrysler.
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http://news.bbc.co.uk/1/hi/business/7839542.stm

Edit: could a mod please change the title to something that makes sense? It was meant to be 'birth' not 'first'
 
Oh dear. Just when Fiat were emerging again as a good car manufacturer.

Chrysler helped to ruin Mercedes-Benz cars for years, please don't do the same for Fiat :(
 
I dont reckon it'd be a bad alliance. It could possibly lead to Alfa Romeo developing rear-wheel drive platforms along with Chrysler, something that Alfa is dying for. And Chrysler might inject a bit of Italian style into their cars.

Maybe Dodge will try and muscle up the Fiat Panda and sell it in the US. That'd be quite amusing.
 
I can only imagine the look on the old guys of the Chrysler board when they realised they were going to have to give up over a 3rd of their beloved all American car firm in exchange for what boils down to some designs on small Euro car engines.
 
I own a brand new Fiat Punto 1.9TDI, absolutely fantastic car, hopefully this means that Chrysler (and by extension the other manufacturers in Detroit) stop making godawful cars and getting bailed out for it.

Learn from the Japanese!
 
geese said:
It could possibly lead to Alfa Romeo developing rear-wheel drive platforms along with Chrysler, something that Alfa is dying for.
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They already have one developed. The 169 is meant to be RWD.

I see the Chrysler / FIAT thing to be bad for FIAT.
 
reckon they'd sell the Fiat 500 over there? :p

the alliance did state that Fiat would not fund Chrysler, so what if they go belly up? Just an expensive lesson for Fiat?
 
This could be good, RWD for Alfa, Jeep can be Fiats 4x4 sales - the one thing that they really lack. Hopefully Fiat can bring some european refinement to the Dodge and Chrysler ranges so that they sell a little better over here.
 
Schtumple said:
So Chrysler are after Fiats fuel efficient engines, sounds like a good deal to me...
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There's no need for the alliance, Chrysler. I'll tell you Fiat's secret: they put smaller sized engines in many of their fuel efficient vehicles. ;)



Hopefully Fiat gets something out of this. I don't see any value in Chrysler (worst of the Big 3, IMO), but 35% of almost nothing isn't a huge risk to take on Chrysler, I suppose. If Fiat loses, they won't lose much.

geese said:
Maybe Dodge will try and muscle up the Fiat Panda and sell it in the US. That'd be quite amusing.
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The Dodge Panda? *shakes head*
 
bartelby said:
I see the Chrysler / FIAT thing to be bad for FIAT.
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I wouldnt be so pessimistic - it'll enable Fiat to sell Alfa over there much easie. I dont reckon its a 2 way engineering deal. What have the Fiat group got to gain from Dodge/Chrysler in engineering?
 
xUKHCx said:
Learning how not to do things is just as important sometimes as knowing how to do things. So in that respect a hell of a lot :D
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Of course, if FIAT learn how to make electrical systems that are less italian then that would be nice.
 
geese said:
Chysler/Dodge engineering isnt so bad is it?
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I'm no expert, but last time I checked most US cars (perhaps more specifically trucks) had the most horribly inefficient engines, and they were all built on the same few crappy chassis, with brakes that don't really work :p All that before you actually get on to how well they're put together.

Given the state they're currently in, it's safe to say they have a lot to learn in all aspects.

You could all learn a lot from the British auto industry of course...already long dead :p :rolleyes:
 
edesignuk said:
I'm no expert, but last time I checked most US cars (perhaps more specifically trucks) had the most horribly inefficient engines, and they were all built on the same few crappy chassis, with brakes that don't really work :p All that before you actually get on to how well they're put together.
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I don't know. I got into a new-ish Ford, and the interior felt pretty well put together.

Doesn't say anything about reliability though. I say we need to give these new models an entire decade to see if their reliability has really improved (as some people claim), although most people here seem happy to defend them if their own Ford/GM/Chrysler has lasted a staggering 6-7 years without issue.
 
Abstract said:
I don't know. I got into a new-ish Ford, and the interior felt pretty well put together.

Doesn't say anything about reliability though, although most people here seem happy to defend them if their own Ford/GM/Chrysler has lasted a staggering 6-7 years without issue.
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I'd say Ford have a distinct advantage as they're successful outside of the US. Their European cars have been very good for quite a number of years now, frequently ranking high in consumer surveys.

If Ford US want to, they already have it in them to make well built good value economic cars.
 
leekohler said:
I think their cars look great- Crossfire, Viper, Challenger, 300m. Feel free to disagree, but I think those cars are awesome looking.
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I'll give you the Viper, it is bloody lovely.


But the 300?
It's a box with wheels...
 
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