Fiat to get 35% of Chrysler
Fiat SpA, Chrysler LLC and Cerberus Capital Management have confirmed the Italian automaker will take a 35 percent share of Chrysler. There will be no cash involved in the deal.
The agreement will still need to be approved by the Treasury under the terms of the $4 billion loan extended to Chrysler which gives the U.S. government approval of all transactions valued at more than $100 million.
According to the agreement, Chrysler will get access to Fiat’s platforms, powertrains and components that would be produced at a Chrysler facility in the U.S. Fiat would also provide distribution support in key foreign growth markets. Fiat will provide assistance to Chrysler in its preparation of a viability plan to the U.S. federal government.
The new alliance does not commit Fiat to make any cash investment in Chrysler, now or in the future.
The agreement already has the support of the United Auto Workers. In the press release announcing the deal, UAW President Ron Gettellfinger said, “This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler’s long term viability.”
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