Whoa - They're Practically GIVING Chrysler Away!

[BlooInBloo]

http://www.calculatedriskblog.com/2009/01/fiat-and-chrysler.html

From the WSJ: Fiat Nears Stake in Chrysler That Could Lead to Takeover

Under terms of a pact that is being hammered out, Fiat is likely to take a 35% stake in Chrysler by the middle of this year. It would have the option of increasing that to as much as 55% ...

Fiat ... wouldn't immediately put cash into Chrysler. Instead it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S. ...

Thirty five percent of Chrysler for the cost of retooling a plant ... that will make Fiats!

EDIT: Dammit - can't put code in subject lines.

[Fire_Medic_Dave]

1. FIAT Fix it again Tony

[Art_from_Ark]

2. Sounds like the same geniuses

who were responsible for Chrysler's current condition were also in charge of giving 35% of the company away for a handful of magic beans.

[exboyfil]

3. Why not an employee owned auto company?

What assets does the Chrysler pension fund have? Maybe they can purchase the company from Cerebus? The Chrysler pension and health insurance fund had $18B in 2007 before an infusion by Cerebus. I wonder how much is in it now after the crash?

If the government is going to do a bail out maybe it can be structured as an employee owned one? At least the future fate of the auto company would be in the hands of the workers.

[Cessna Invesco Palin]

4. Hmm...

Wonder if this means the US market might start getting Alfa Romeos again.

[KharmaTrain]

5. At Least They're Getting Something...

If Fiat is willing to build new facilities in this country...bring it on. Someone's gonna need to be hired to do the re-tooling as well as working those plants once they're operational. Also, this frees bail-out money to go toward workers and pensions...where it will do the overall economy the best.

Does it really matter whose name is on the car if it's made in American by Americans in a union factory??