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New Details About The Fiat-Chrysler Pre-Nup

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Chrysler and Fiat logos

Chrysler and Fiat logos

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More info about the on-again/off-again marriage of Chrysler/Fiat has emerged--namely, details about Fiat's initial stake in Chrysler and how the Italian automaker can earn a larger share of the pentastar pie via certain incentives.

Citing "a person familiar with the Fiat-Chrysler negotiations", AutoNews reports that Fiat will hop into the marital bed owning a 20% stake in Chrysler. Assuming that all goes well and that Fiat lunges for the carrots dangled in front of its aquiline nose, that figure will steadily rise:

  • 25 percent, when the first Fiat engine is certified for use in the United States.
  • 30 percent, when U.S. production of the first Fiat-based vehicle begins.
  • 35 percent, when the first U.S.-built vehicle based on Fiat technologies is exported.

Of course, there's always been talk about Fiat beefing up its ownership of Chrysler to a majority position of 55%, but as you probably recall, President Obama made it clear that that can't happen until after Chrysler repays its bailout loans. And to further complicate matters, the nuptials can't even move forward until the two companies come up with a detailed plan for solvency by the end of this month.

All of which goes to prove what brides and their fathers have known for centuries: planning a wedding is a real pain. Is there were a Vegas-style drive-through chapel big enough for these guys?

For more details, be sure to check our own Marty Padgett's interview with Chrysler CEO Jim Press, coming up at 3:00pm EST today.

[source: AutoNews, sub req'd]

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Comments (4)
  1. "Marriage Made In Hea+++ Detroit"

    This will be done and American workers and consumers will be the better, in the long run. I full expect that a merged Chrysler/Fiat will be a force in international manufacturing. The product synergies are excellent and the potential for market success, especially for Chrysler are enormous. Look at the just announced Jeep Grand Cherokee, its not only a domestic leader, it's arguably the best luxury SUV product in the world, if it hits it's quality targets. With un-biased reviews, it can offer incrediable market penertration world-wide for Chrysler/Fiat. The best is yret to come and this marriage made in, oh well, you get it.
     
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  2. "With Jeep Still a Tin Ear"

    With the Grand Cherokee proposed revision, Chrysler still has a tin ear. Will they never learn from their existing problems? This SUV will be delivered with a fuel robbing city/highway rating of 13/19. This new Jeep is based on the Mercedes ML Platform. If Nardelli were smart, he would order up the Daimler available 204 HP, 369 pound/feet torque, 4 cylinder Bluetec CDI turbodiesel engine with its city/highway rating of 28/39 as the standard engine. This would be a way to get back into the game big time with an big SUV that delivers fuel efficiency better than all small SUVS and a lot of small cars. This engine can be built stateside to supply the Mercedes E-Class and the Jeep in an underused Chrysler plant once certified. The only issue is giving the Jeep some more time in the wind tunnel to drop the drag coefficient down to about .26 and for it to drop a little more weight to get it down to E-Class sedan weight.
     
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  3. "Get Real"

    I must admit, that i am a little disappointed with the mileage, of the "pentastar" V6. Chrysler had touted this engine as best in class, in nvh and comparable in mileage to the Japanese manufacturers. However lets get something straight, this vehicle was not built off,of a Mercedes platform. Mercedes used Chrysler engineers, who know how to build a proper SUV; how many people remember that the first ML spent the first 5 yrs; On the lemon list. We keep selling our domestic auto manufacturers short. The rumor i hear in regards to the Diesel, is that Mercedes has been holding Chrysler's head to the wall in what they charge for their precious,engine. This has led to Chrysler, with Cummings developing or working on a small displacement diesel for the Ram and hopefully the new Jeep. So folks cut the company some slack, the govt is trying to kill them. Why else would they require so much of the Auto companies, and nothing of the bankers. Why have the German,Japanese and yes the Chinese governments given money to their auto industries, without conditions, but the American and Canadian governments demand that the companies must prove their viability. 100 yrs of existence isn't viability i guess. Wake up people while we bad mouth our own and buy Japanese cars that now are over rated,(look at Toyota's recall numbers worldwide over the past 5 yrs) please.. give the domestic a chance to prove themselves. They didn't create this problem by themselves,there was a lot of greed and avarice on every body's part. Management, dealers, executives etc. The workers only asked for fair pay for a fair days work. The Grand Cherokee is a far superior truck than before, cut Chrysler some slack. Their recall numbers were the lowest of any manufacturer last year, they have matched Toyota, in the time required to produce a vehicle, and it would appear the more they say the less the people hear. Go Chrysler GOOOOO..
     
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  4. "anthony"

    AMEN Anthony, amen!
     
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