Fiat bought 35% of chrysler

[Budgetice]

saw in bloomberg, fiat bought 35% of chrysler

 

very bold move during such time of uncertainty...

 

 

Edited January 20, 2009 by Budgetice

[Contax]

You mean this ?

 

http://uk.reuters.com/article/companyNews/...0?symbol=FIA.MI

 

Think about this for a moment. Fiat have got a 35% stake in Chrysler for what? No capital has been invested and I somehow doubt Chryler is going to be stealing sales from Fiat in the European market.

Chrysler desperately needs lots of things that Fiat have. Fiat don't need Chrysler as much, but they now have access to a large dealer network in the US, and a big customer for their engines and other technologies.

 

It's now up to Chrysler to use the resources that they now have available to them to turn themselves around.

Fiat really have nothing to lose from the deal, and much to gain...

 

My only concern is historically US motor companies haven't had the best track record when it comes to tie ups with overseas makers, lets hope this doesn't go down the same route or drag Fiat down with the failing US car industry!

 

[Perrier]

You mean this ?

 

http://uk.reuters.com/article/companyNews/...0?symbol=FIA.MI

 

Think about this for a moment. Fiat have got a 35% stake in Chrysler for what? No capital has been invested and I somehow doubt Chryler is going to be stealing sales from Fiat in the European market.

Chrysler desperately needs lots of things that Fiat have. Fiat don't need Chrysler as much, but they now have access to a large dealer network in the US, and a big customer for their engines and other technologies.

 

It's now up to Chrysler to use the resources that they now have available to them to turn themselves around.

Fiat really have nothing to lose from the deal, and much to gain...

 

My only concern is historically US motor companies haven't had the best track record when it comes to tie ups with overseas makers, lets hope this doesn't go down the same route or drag Fiat down with the failing US car industry!

 

Fiat is cutting jobs and seems like they may need a bailout themselves so I dun no idea why they still wanna buy Chrysler.... There is a very heavy scent of greed as well as expectation for government assistance to help them be even bigger at the expense of taxpayer's money.

 

[Contax]

Fiat is cutting jobs and seems like they may need a bailout themselves so I dun no idea why they still wanna buy Chrysler.... There is a very heavy scent of greed as well as expectation for government assistance to help them be even bigger at the expense of taxpayer's money.

 

Chrysler desperately needs lots of things that Fiat have. Fiat don't need Chrysler as much, but they now have access to a large dealer network in the US, and a big customer for their engines and other technologies.

 

It's now up to Chrysler to use the resources that they now have available to them to turn themselves around.

 

Fiat really have nothing to lose from the deal, and much to gain and this is purely to introduce alfa and some fiats like the 500 into the US. both companies will also gain a few other trimmings but its the alfa and 500 thats the main turkey.

 

great move by fiat i say

 

 

[Budgetice]

its a good move but the timing is really bad... the shares plunge after the news was realised..

 

 

[Contax]

its a good move but the timing is really bad... the shares plunge after the news was realised..

probably the general consensus of fiat having just walk out of the GM/FIAT collaboration not too long ago(successfully and got GM to do a payout of about US2B.) and now plunge back into the US market again(this time a much worse off chrysler) send shareholders some chill down their spine .

 

However in my opinion ,it's a win win case for both company in the long run.If the Italian firm could take this opportunity to increase its production capacity in the United States by piggybacking onto Chrysler