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MiscellaneousChrysler and Fiat Deal Close to Closing
Posted by mike on 2009/4/28 20:18:52 (1254) reads

MSN Money is reporting that although the deadline is just 2 days away, it appears that the Chrysler/Fiat deal will be done in time.

The United Auto Workers union would own 55% of a restructured company, with Fiat getting 35% and creditors, including the U.S. government, getting 10%.
UAW leaders tentatively agreed to a deal on Monday, but it now will be sent to local unions for ratification.
In related news, Chrysler's former parent, Daimler (DAI, news, msgs) late Monday reached a deal to unload its remaining stake in Chrysler. Daimler will pay $200 million for three years to secure pension payments. The German automaker will also forgive the repayment of loans and dispose of its 19.9% Chrysler stake.

I'm not sure I completely understand what this means - with the ownership breakdown listed above, where does Cerebus fit into all this?

Anyone? Anyone? Bueller?

Thanks to JayBird for the heads-up on this article.

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JayBird
Posted: 2009/4/30 9:54  Updated: 2009/4/30 9:54
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 Re: Chrysler and Fiat Deal Close to Closing
FIAT = Fix it again, Tony.

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01TJ
Posted: 2009/4/29 16:07  Updated: 2009/4/29 16:07
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 Re: Chrysler and Fiat Deal Close to Closing
Sounds bad to me...

%55 in control of the UAW who are largely responsible for the US automotive industry being in the situation it is in. The UAW only works in their own interest.

%35 in control of a foreign company.

%10 in control of the federal government which can't run anything right and stick to any kind of budget.

The only company that actually injected some good technology and quality into Chrysler (Diamler) is no longer in the picture. Sounds like a recipe for disaster to me.

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hoghead00
Posted: 2009/5/1 7:14  Updated: 2009/5/1 7:14
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 Re: Chrysler and Fiat Deal Close to Closing
I agree with 01TJ. Sounds like a recipe for disaster.... Based on track record, who do we really want running Chrysler? UAW.... Yeah, that's a good idea. They are the primary reason Chrysler is in this mess. Obama and team.... Since when has the government bureaucracy run anything efficiently... Maybe, we can just spend more money on it? Or Fiat... Can't say I know much about them.... Maybe they are the best bet.... I know the first two aren't good ideas...

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RUBICON
Posted: 2009/4/29 9:52  Updated: 2009/4/29 9:53
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Posts: 377
 Re: Chrysler and Fiat Deal Close to Closing
If all of the above takes place I expect to see the following:

2010
Grand Cherokee: Launch Of New Model (Anyone Know It's Model Designation Yet?)

2011
Liberty: All New Interior, Minor Exterior Refresh, Phoenix 3.6L Replace 3.7L
Wrangler / Wrangler Unlimited: All New Interior, Phoenix 3.6L Replace 3.8L

2012
Compass: Discontinued
New: Fiat-Based Jeep
Grand Cherokee: 4WD EV Option

2013
Patriot: Complete Redesign, New-Fiat Sourced 4 Cylinder
Wrangler/Wrangler Unlimited: 4WD EV Option
Liberty: Complete Redesign, 4WD EV Option

Poster Thread
myhotwheels22981
Posted: 2009/4/29 0:53  Updated: 2009/4/29 0:55
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 Re: Chrysler and Fiat Deal Close to Closing
It appears to mean that Cerebus will be selling it's stake in Chrysler to the UAW, Fiat, and the U.S. Government.55%+35%+10%=100%...Cerebrus said from the beginning that they were looking ot offlload Chrysler for a profit, and/or sell it off for a profit...I don't know if they acomplished either, but they did get Chrysler off their backs.

On the Positive side, Chrysler is free of any commitment/obligation to Daimler, the UAW has conceded wages and bennefits in exchange for profit sharing, Chrysler has access to Fiat small car technology (Which after seeing small car crash-tests on TV, I'm not sure if I want it) and Jeep stays here in America, with full access to the Hemi, the Phoenix, and the Cummins V-6 Diesels.

Mabye with 10% Government ownership, we can finally get PiHV drivetrains, and the Willy's Concept Jeep.

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Brian_R
Posted: 2009/4/30 13:38  Updated: 2009/4/30 13:38
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Posts: 47
 Re: Chrysler and Fiat Deal Close to Closing
Cerebus forewent it's stake for the guarantee in the agreement that GMAC gets all of the financial services / loan arrangements of the "new chrysler" which if you recall GMAC is owned by Cerebus. Lets hope they rename that firm!
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