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Chrysler Responds Positively to Federal Stance, Assistance


Bob Nardelli

Bob Nardelli

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Chrysler CEO Bob Nardelli reacted positively to news of the Obama Administration, U.S. Treasury, and Auto Task Force's news of assistance as the automaker restructures and preps for an alliance with Italian automaker Fiat.

Chrysler pentastar

Chrysler pentastar

Enlarge Photo

Nardelli says he's been meeting weekly with the Auto Task Force team since February 17, and says Chrysler appreciates the team's responsiveness and assistance. He heralded the Task Force's "speed, diligence, good faith and strong grasp of the difficult issues" the company faces as it restructures, and cited the government's backing of vehicle warranties and the appointment of Dr. Edward Montgomery (Director of Auto Recovery) as evidence of their support.

Read Chrysler's full release below the break.

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Auburn Hills, Mich., Mar 30, 2009  -  Today marks an important milestone for Chrysler LLC. We are encouraged by the commitments of the Administration, U.S. Treasury and President’s Auto Task Force to the American automobile industry and Chrysler’s viability, with a Fiat alliance.

We are pleased that Chrysler, Fiat and Cerberus have reached agreement on a framework of a global alliance, supported by the U.S. Treasury. Chrysler has consistently said that the alliance with Fiat enhances its business model that expands its global competitiveness. We appreciate the willingness of the Task Force, along with industry and financial experts, to consult closely with us in order to achieve this significant step.

By providing Chrysler with product and platforms, technology cooperation and global distribution, Fiat strengthens Chrysler’s ability to create and preserve U.S. jobs; gives U.S. consumers more choices for environmentally advanced vehicles; gives its dealers more of the products they need to be successful; helps stabilize the supplier base; and allows Chrysler to pay back government loans sooner.

Chrysler has had a series of very constructive discussions since our plan was submitted February 17, including weekly face-to-face meetings with the Task Force. We have been impressed by their speed, diligence, good faith and strong grasp of the difficult issues our industry faces in this financial crisis. This is evidenced by the U.S. government’s initiatives to support consumer warranties and suppliers, as well as their appointment of Dr. Edward Montgomery, Director of Auto Recovery.

I want to personally assure all of our customers, dealers, suppliers and employees that Chrysler will operate ‘business as usual’ over the next 30 days. While we recognize that we still have substantial hurdles to resolve, Chrysler is committed to working closely with Fiat, the Administration, U.S. Treasury and the Task Force to secure the support of necessary stakeholders. If successful, the government will consider investing up to the additional $6 billion requested by Chrysler to help this partnership succeed.

 
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Comments (10)
  1. "D'oh!"

    I see there is one basic problem with Chrysler's recovery strategy: they are relying on Italian platforms. FIAT is no longer on death's door, but we've seen how the Chrylserati TC turned out. Is the Chrysler lineup going to be half a dozen diasters like that? And Nardelli isn't a car guy so he has no product instincts. Not lookin' good for the former Home Depot king, or his hedgie pals.
     
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  2. "FIAT, they are going to rely on FIAT saving their bacon?"

    I don't know whether to laugh or cry
     
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  3. "Give me a break"

    Right, because we should judge a potential alliance by looking at a single platform built over 23 years ago. People complained when Chrysler got federal help back in the 80s; they turned in record profits and paid back those loans. Tell me why that couldn't happen again?
    I know most of the Chrysler haters have to take a break from humping their douched-out Hondas and Euros in order to post on here, but go ahead.
     
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  4. "Chrysler lives!"

    This is a new dawn for Chrysler. Fiat is considered a technological and quality leader in Europe and the exchange of products, expanded dealer networks and shared mission will pay off royaly for both. I have no doubt that this alliance will emerge as a dominant force in the international auto industry.Yes,Chrysler lives!
     
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  5. "Put a fork in them..."

    Admittedly, I've never owned a Chrysler anything. Aside from their relatively better-competing minivan and truck, the quality/value has always been worse than their domestic competitors--and that hasn't changed in 30 years. The real issue is that a taxpayer-supported company is relying on an Italian automaker--and it's not ever for their styling! That's kind of like going to Lucas for their wiring harnesses and switchgear! Chrysler doesn't have the breathing room they did 25 years ago: more competitors, more market niches at lower volumes, higher technology requirements w engines and drivetrains--you can't outsource everything but the badge! Even if all of their customers decided they wanted the Corinthian leather for their 300/sebring/pacifica/nitro, the company can't downsize fast enough without Chapter 11. Yeah, the Challenger is cool, but they can't sell 400,000, or even 200,000. Do you see Cerberus investing more cash? They got rich by avoiding throwing good money after bad.
     
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  6. "Alliance"

    Fiat makes really nice cars (Croma, 500, van-like Ulysse, or even Qubo), so some of those platfroms and smaller engines may benefit Chrysler when gas is expensive again. However, what will Fiat get in return? A RAM or the overpriced and overblown TC? This will not work out at all.
     
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  7. "Fiat"

    Bill I agree, Fiat is prob the only thing that can save Chrysler. They are now viewed as a quality leader and they turned around big time. This could be one of the biggest comebacks in history if this plays out right. It sure has the potential to. Lets hope It does!
     
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  8. "Chrysler"

    JKD, Fiat is looking at Chryslers very experianced and very good dealer network, yes they way to many dealers but these are some of the most dedicated people out there. Chrysler also has Jeep, the new Pheonix engines which are supposed to be Honda like smooth. And there new mid size cars coming ou (200C) and the large cars (300/Charger). Fiat will also get manufacturing over here. And yes dot forget the minivans which Autoweek called better than Honda, and Toyata. Combined this company will be a major force in the auto biz. I believe this will be more of a Fiat takeover than a partnership but it has the potential of being huge. Chrysler has never been able to bail themselfs out after the Daimler pillaging.
     
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  9. "Hopefully"

    I'm all for viable Chrysler, so I hope you're right. As far as the vans go, I can tell you from a personal experience that I ended up with Toyota that is much cheaper, better (CR and many others), and holds its value really well. I had high hopes for the new TC but they blew it (pricing, tech, and dealer)
     
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  10. "The Douchinator"

    The WSJ reports that Cerberus has lost all their equity in Chrysler. Don't expect Nardelli to hang around for long. It's all over but the crying.
     
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