Chrysler Trying to Sell to Fiat
May 2, 2009 by Stephen Kersey
Filed under Business
Chrysler, the United States automaker that recently was forced to file bankruptcy, is trying to sell its assets to Fiat. However, there are still many obstacles that are in the way before the sale of those assets are complete.
The main obstacle is the creditors to which Chrysler owes money. Until the creditors are satisfied, the entire bankruptcy process will be held up. According to both Chrysler and the federal government, the goal is to have a bankruptcy process that can be completed in in no more than 60 days. At the end of the process, Chrysler is aiming to be in a position to survive in the new marketplace that calls for flexibility and conservation.
The federal government is said to be ready to hand over more bailout money to Chrysler. In total, the government will likely throw approximately $12 billion into Chrysler in hopes to help it survive once it comes out of bankruptcy.
Fiat is an Italian company that has a long history in the automobile manufacturing industry. Once all is said and done in the bankruptcy process, many industry experts believe Fiat will emerge as Chrysler’s majority owner.
Fiat new Chrysler owners? (Image: Flickr)
FIAT cars are, in fact, excellent. I’ve spent a lot of time in Europe, and know, have owned, and rented FIAT and Alfa Romeo cars. The technology and quality is very good, the style is fantastic, and If you thought having more small cars in America will be a boring hell, then you’ve never driven a FIAT.
Forget what your college roomate told you in 1974, most of the problems arose from US safety and emissions regs, dealer issues in the US, and Russian steel which the company unfortunately obtained in a deal for a factory there. I myself had a 1978 FIAT 131 sedan that was the most enjoyable economy car you could imagine… still on the road 30 years later, too.
Any portrayal of FIAT as a producer of antiquidated junk is just nonsense from the uninformed… and they make midsized cars, trucks, and commercial vehicles too- not just little 500s.
IMO, they are going to surprise a whole lot of people.