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Chrysler cash from stock sale?

Fiat has answered the question of how the company planned to finance its takeover of Opel at the same time it would presumably need to invest funds into Chrysler. The company now plans to take over GM Europe and create a new corporation, which would be listed on a yet-unspecified stock exchange, combining Fiat, Opel, Saab, Vauxhall, and its share of Chrysler. In return for keeping most of GM Europe’s plants running, Fiat has asked for around $7-9 billion in financing from countries with Opel and Fiat plants. The new company would keep GM as a minority shareholder, and would help to counter the flood of imports from Japan, Korea, and, eventually, China.  However, it would take over Opel without taking on Opel’s debts.

Fiat Group would retain Ferrari and Maserati. (information from Automotive News)

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Tags: Alliances, Auto industry, Chrysler, Fiat, GM .


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