2010 Chrysler 300
UPDATE: Chrysler and Fiat have announced that Fiat will take a 35 percent stake in Chrysler. The agreement is non-binding and Chrysler will not receive a cash investment. Fiat will have the option to raise the stake to as much as 55 percent.
ORIGINAL STORY BELOW:
Chrysler has been the most beleaguered of the Big Three American automakers over the past few months, and many pundits have predicted the demise of Chrysler by the end of this year. But the company may have found exactly what it needs to survive--a strategic partnership with Fiat.
Automotive News reported on Monday that Fiat could take a 30-35 percent stake in Chrysler. Chrysler would gain access to some of Fiat’s platforms--mostly the company’s small-car, mini-car, and midsize car platforms--while Fiat would gain access to Chrysler’s dealer network, which would help Fiat distribute its Alfa Romeo models and the Fiat 500 minicar. Chrysler execs wouldn’t comment on the discussions, but Automotive News is reporting that an agreement may have already been signed, and that an announcement may be made in the next few days.
The Examiner’s Take
Ever since talk of a merger between Chrysler and GM began in the late fall of 2008, I’ve thought an alliance with another manufacturer could help Chrysler weather the current economic storm. A merger with GM didn’t make much sense for either side--GM would probably only be interested in the Chrysler minivans and Jeep--but there were other possibilities out there. The one that made the most sense was a partnership between Chrysler and Renault/Nissan. That partnership would make sense, since Nissan is already at work at supplying a platform--presumably the Versa platform--for the upcoming 2010 Dodge Hornet small car. But a Chrysler/Fiat partnership also makes sense. Not only will Chrysler have access to several small-car platforms, but it could build a stronger global base--Chrysler has the weakest global presence of the Big Three at the moment. Fiat will need a distribution network if it wants to bring Alfa Romeo back to our shores--and if it wants to have a place to sell its 500. As long as Chrysler maintains control over its own destiny--we all remember how well the DaimlerChrysler “merger” worked out--this could help the company stay viable through tough economic times while it adjusts its product lineup to better reflect market realities. This could be the shot in the arm that the company needs.
Comments