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romalerig said:
Fiat has already access to Chrysler cash. Remember Melfi.......
I could be wrong but I dont think so. Wasnt ther restrictions placed on that when Chrysler refinanced the government loans with the private ones?
 

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Jeepnut said:
I could be wrong but I dont think so. Wasnt ther restrictions placed on that when Chrysler refinanced the government loans with the private ones?
Melfi is a JV for Fiat and Jeep, so there is a Chrysler contribution to the whole investment (60 % Chrysler, 40% Fiat)
 

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romalerig said:
Melfi is a JV for Fiat and Jeep, so there is a Chrysler contribution to the whole investment (60 % Chrysler, 40% Fiat)
That's different; the investment in that case is simply predicated on the factory output for each company. Jeep invests 60% because that's the amount of production output that it expects to use out of the factory.

It's somewhat similar to what happened for the VW minivan, or the ford Ka at the Fiat 500 factory in Poland.

Cash pooling is an entirely different issue, and it can't come soon enough. It will help both companies save a bunch of money in financing costs and credit line fees. The merger will also streamline a bunch of administrative procedures that have no reason to exist, and it will also pave the way for a unified IPO that will give it access to -relatively- low cost financing going forward.

There's still a lot of work ahead to put the combined company into solid ground for the future.
 

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Amen.
 

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Maserati123 said:
I hope Fiat gets this sorted soon, they deserve to own Chrysler, because without Fiat there would be no Chrysler

"Deserve" is a bit much - all things considered. And the converse of your reasoning is also true; in that, without Chrysler, there would be no Fiat.
 

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sebring96hbg said:
"Deserve" is a bit much - all things considered. And the converse of your reasoning is also true; in that, without Chrysler, there would be no Fiat.
I purport that without Chrysler's profitability coming from Cerberus-improved Daimler vehicles, Alfa would now be owned by VW and Fiat would be on life support.
 

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Erik Latranyi said:
I purport that without Chrysler's profitability coming from Cerberus-improved Daimler vehicles, Alfa would now be owned by VW and Fiat would be on life support.
So true.
 

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Cornupenuria said:
So, does Daimler still own Freightliner and Detroit Diesel?
Yes, through a convoluted series of acquisitions and mergers, Penske bought sold Detroit Diesel from GM, bought VM, merged it with Detroit, sold Detroit to Chrysler (Daimler) but managed to keep 50% of VM, which he later sold to Fiat and GM (kind of getting GM to pay twice for Detroit!)
So Daimler has their heavy trucks and diesels (Freightliner and Detroit) into a new division called Daimler Trucks North America LLC, and Detroit Diesel is known simply as Detroit to encompass all engines and future products.
 

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Erik Latranyi said:
I purport that without Chrysler's profitability coming from Cerberus-improved Daimler vehicles, Alfa would now be owned by VW and Fiat would be on life support.
Cerberus didn't make the Grand Cherokee, Charger, 300, and Durango great platforms, Wolfgang Bernhard made them great platforms. Art Nardelli was one of the worst managers in the history of the American car industry and that's really saying something.
 

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Yes, through a convoluted series of acquisitions and mergers, Penske bought sold Detroit Diesel from GM, bought VM, merged it with Detroit, sold Detroit to Chrysler (Daimler) but managed to keep 50% of VM, which he later sold to Fiat and GM (kind of getting GM to pay twice for Detroit!)
So Daimler has their heavy trucks and diesels (Freightliner and Detroit) into a new division called Daimler Trucks North America LLC, and Detroit Diesel is known simply as Detroit to encompass all engines and future products.
Norm, thanks for the confirmation/update. I'm wondering is there some part of CDJR that Fiat really wants; with the rest to be sold off?
 

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billfrombuckhead said:
Cerberus didn't make the Grand Cherokee, Charger, 300, and Durango great platforms, Wolfgang Bernhard made them great platforms. Art Nardelli was one of the worst managers in the history of the American car industry and that's really saying something.
Wolfgang? Really?
 

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billfrombuckhead said:
Cerberus didn't make the Grand Cherokee, Charger, 300, and Durango great platforms, Wolfgang Bernhard made them great platforms. Art Nardelli was one of the worst managers in the history of the American car industry and that's really saying something.
Actually, Erik is dead on. Hate Nardelli all you want, but they put in place the overwhelming majority of changes that have saved Chrysler for Fiat.

Maserati123 said:
I hope Fiat gets this sorted soon, they deserve to own Chrysler, because without Fiat there would be no Chrysler
That's a really bold and some what outlandish statement. Fiat does not "deserve" anything. They are not and were not entitled to have Chrysler

Mike
 

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sebring96hbg said:
Wolfgang? Really?
Yeah Wolfgang, He scares bad CEO's as bad as Bob Lutz does. Not a great politician but a brilliant car guy. The Mercedes leadership was scared he would take over the whole company from the American side which is one reason they starved Chrysler. Wolfgang was the guy who started the new Grand Cherokee platform.

After obtaining his doctorate degree, Bernhard joined McKinsey & Company in 1990 as a management consultant. In this capacity, he was assigned to Mercedes-Benz. In 1992, he joined Mercedes-Benz AG. Bernhard became CEO of Mercedes-AMG in 1999. Following the merger of Daimler-Benz and Chrysler in 1998, Bernhard was appointed President and COO of the Chrysler division in 2000.[5] He continued in the position until he was slated to become the head of the Mercedes-Benz group in May 2004, but was passed over for the job just a day before his official switch. Bernhard subsequently resigned.[6] Bernhard then served as the CEO of the Volkswagen brand for Volkswagen AG from 2005 to 2007.[7] He was ousted from this position in January 2007 by Ferdinand Piech.[8][9][10] Bernhard then rejoined Daimler in April 2009.
http://en.wikipedia.org/wiki/Wolfgang_Bernhard
 

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Absolutely Wolfgang. Why do you think the BOD fired him when he told them the biggest mistake they could make was getting rid of Mitsubishi?

I sure hope Maserati123 was being sarcastic, and if not, way out to lunch on this one.
 
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