Delete a Message
chicomarx
Chrysler says Fiat to assume 35 percent of U.S. debt
DETROIT (Reuters) Thu Mar 19, 2009
Chrysler said proposed partner Fiat SpA (FIA.MI) would assume 35 percent of its debt to the U.S. government.
The No. 3 U.S. automaker has a nonbinding deal with Italian automaker Fiat, which has agreed to take a 35 percent stake in Chrysler in exchange for access to technology and overseas markets.
"That's a significant commitment for Fiat," said Brad Coulter, restructuring advisor at Detroit area O'Keefe & Associates, who follows the auto industry closely.
"We would leapfrog four, five or six years of development," he said. "It's a perfect fit, as opposed to conflicting brands, overlapping dealers, etc."
Chrysler also said the combined purchasing budget of the two companies would be $80 billion.
The automaker said earlier this week that the Fiat deal is worth up to $10 billion for Chrysler and could preserve 5,000 North American manufacturing jobs.
DETROIT (Reuters) Thu Mar 19, 2009
Chrysler said proposed partner Fiat SpA (FIA.MI) would assume 35 percent of its debt to the U.S. government.
The No. 3 U.S. automaker has a nonbinding deal with Italian automaker Fiat, which has agreed to take a 35 percent stake in Chrysler in exchange for access to technology and overseas markets.
"That's a significant commitment for Fiat," said Brad Coulter, restructuring advisor at Detroit area O'Keefe & Associates, who follows the auto industry closely.
"We would leapfrog four, five or six years of development," he said. "It's a perfect fit, as opposed to conflicting brands, overlapping dealers, etc."
Chrysler also said the combined purchasing budget of the two companies would be $80 billion.
The automaker said earlier this week that the Fiat deal is worth up to $10 billion for Chrysler and could preserve 5,000 North American manufacturing jobs.