F&I Management & Training

Chrysler Group and Fiat Group have finalised the details of their global strategic alliance under Fiat boss Sergio Marchionne.

Fiat has a 20 per cent stake in the new Chrysler operation, which will rise to 35 per cent once agreed milestones are achieved.

Shareholders
The deal follows Fiat's successful rescue package which was launched after the US carmaker was placed into Chapter 11 bankruptcy protection. Fiat cannot gain a majority stake in Chrysler until all US taxpayer funds are repaid.

Other shareholders include the United Auto Workers Retiree Medical Benefits Trust (55 per cent) and the US (8 per cent) and Canadian (2 per cent) governments.

"Significant day"
"This is a very significant day, not only for Chrysler and its dedicated employees, who have persevered through a great deal of uncertainty during the past year, but for the global automotive industry as a whole," said Sergio Marchionne, chief executive officer of the newly formed Chrysler Group LLC.

"From the very beginning, we have been adamant that this alliance must be a constructive and an important step towards solving the problems impacting our industry. We now look forward to establishing a new paradigm for how automotive companies can operate profitably going forward," he said.

Fine detail
As part of the alliance, Fiat will offer Chrysler its technology, platforms and powertrains for small- and medium-sized cars, allowing the company to offer an expanded product line, including new environmentally friendly vehicles.

Chrysler will also have access to Fiat's international distribution network, with particular focus on Latin America and Russia.

DATED: 16.06.09

FEED: MT