Tuesday, March 24, 2009
Fiat doesn't want Chrysler's debts
Fiat doesn't want to take on any of Chrysler's debt in its agreement to acquire a 35% stake in the US carmaker.
Fiat “intends to make it absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler,” the Italian carmaker told Bloomberg.
However Chrysler chief executive Bob Nardelli had told US TV news earlier this month that Fiat would assume responsibility for Chrysler’s debt equal to its equity stake.
Fiat plans to trade its small-car technology for a stake in Chrysler, which is being propped up by US state aid. Fiat has said it won’t make any cash payment and isn’t committed to future funding.
DATED: 24.03.09
FEED: AM
Fiat “intends to make it absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler,” the Italian carmaker told Bloomberg.
However Chrysler chief executive Bob Nardelli had told US TV news earlier this month that Fiat would assume responsibility for Chrysler’s debt equal to its equity stake.
Fiat plans to trade its small-car technology for a stake in Chrysler, which is being propped up by US state aid. Fiat has said it won’t make any cash payment and isn’t committed to future funding.
DATED: 24.03.09
FEED: AM
