More what the Hell…?
The Washington Times is reporting that Chrysler is signing some sort of “global alliance” agreement with Fiat. Fiat? Really? GM bought Fiat in 2000. By 2005, it was generally known as GM’s worst move ever. But guess who is forcing the deal;
The deal was announced just hours after President Obama said the company had 30 days to close the deal or not receive additional federal loans to keep the company out of bankruptcy.
Yup, the same guy who decided that GM’s CEO had to go. So I guess he figures linking Fiat to Chrysler will help somehow – like it helped GM?
Category: Politics
Exactly. I had the same reaction. When was the last time you saw a Fiat on the road (not on blocks in someone’s backyard) in America? Fiat? The only reason Italy has Fiat is out of sympathy for France, which has Renault.
This is the smartest President ever?
Fiat?
Actually GM did not buy Fiat but was in a limited partnership with the option to buy at the end. It cost GM $2 billion to get out of it. Indeed it was one of “GM’s worst move ever” Wagoner was responsible for signing that deal with Fiat and should have been ousted by the board then.
http://www.washingtonpost.com/wp-dyn/articles/A21140-2005Feb13.html
This actually is a pretty good deal for Chrysler and it has been talked about since before Obama was elected. Fiat was looking at Ford and Chrysler both. Wasn’t that long ago that Chrysler was selling Mitsubishi trucks rebranded as Dodge. I think we would see a similar venture here.
Fiat is the much stronger of the 2 as they have their huge agriculture and construction business. They bought my beloved Case International Harvester some time ago and are only 2nd to those damn green tractors. I own 3 red tractors. 🙂
I think Fiat would be wise to unload their auto business and stick with the industrial equipment myself.
Ford learned a hard lesson with Land Rover and Jaguar: Don’t expect to make money in a debt-ridden European Union. The currency fluctuations will kill your investment before the competition can. General Electric is learning that right now (trading at 10$ and bupkiss a share). Tata (Indian company who bought Jag and L/R from Ford) is learning it.
I really, really don’t understand how taking on an small EU carmaker is going to help Chrysler.
If it works, I will be amazed.
Oh, and the American markets reacted smartly to Obama’s business decisions today by dropping 254 points.
What sounds better for the administration:
“Fiat is in bankruptcy,” or “Chrysler is in bankruptcy”?