*** UPDATE *** Moments after Chrysler released an announcement that a partnership with Fiat was a done-deal, the American auto manufacturer released another statement with slightly revised wording stating that it had just a “framework” of a deal in place. *** UPDATE ***
Hours after President Barak Obama gave Chrysler a deadline of 30 days in which to solidify a partnership with Fiat, a deal has indeed been made.
“We are pleased that Chrysler, Fiat and Cerberus have reached agreement on a framework of a global alliance, supported by the U.S. Treasury,” said Chrysler Chairman and CEO Bob Nardelli in a press release issued by Chrysler. “Chrysler has consistently said that the alliance with Fiat enhances its business model that expands its global competitiveness. We appreciate the willingness of the Task Force, along with industry and financial experts, to consult closely with us in order to achieve this significant step”
The new partnership will see Fiat provide Chrysler with technology, products and several vehicle platforms for global distribution.
“Fiat strengthens Chrysler’s ability to create and preserve U.S. jobs; gives U.S. consumers more choices for environmentally advanced vehicles; gives its dealers more of the products they need to be successful; helps stabilize the supplier base; and allows Chrysler to pay back government loans sooner,” continued Nardelli.
“I want to personally assure all of our customers, dealers, suppliers and employees that Chrysler will operate ‘business as usual’ over the next 30 days. While we recognize that we still have substantial hurdles to resolve, Chrysler is committed to working closely with Fiat, the Administration, U.S. Treasury and the Task Force to secure the support of necessary stakeholders.”
The final details of the Chrysler and Fiat partnership (whether it be a merger or ownership) must still be worked out over the next 30 days, after which Chrysler is still seeking $6 billion to get the new Chrysler on its feet.