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]