Fiat Chrysler Deal Finalizes

Yahoo! Finance:

DETROIT (AP) -- Italian automaker Fiat says it has closed a deal to take over Chrysler's good assets, forming a new company and clearing the way for the struggling Chrysler to emerge from bankruptcy protection.

Fiat signed on to the deal early Wednesday after the U.S. Supreme Court late Tuesday refused to hear an appeal of lower court rulings that approved the asset sale.

The deal means that Fiat CEO Sergio Marchionne will take over control of Chrysler.

The Italian automaker won't put any money into the deal but will give Chrysler sorely needed small-car and fuel-efficient engine technology.

Read the whole story: Yahoo! Finance

Comments

[KCFreedom]

There were "good" assets?

What are the taxpayers stuck with?

[ejhickey]

The quality of Fiat was rated last by a recent JD Power car owner survey in the UK. Chrysler was one notch ahead of Fiat.

[davidwayneosedach]

I am looking forward to test driving a Fiat.

[geithnertookmymoney]

Having said that, unless we rethink the way we use our wealth, this world is doomed. al-Waleed bin Talal, however he came by his wealth is in a position to make a difference. Instead he chooses conspicuous self-consumption.
next shoe to drop real soon...hyp­erinflatio­n..market tanking..sell now

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[judiNJ]

Well, I like it. I have a very good feeling about this merger and I am one that owns a Honda Hybrid. I always liked the cute Fiats and if we see some really nice designed Chrysler products, I am all for it. Don't forget, folks, these are our American brothers and sisters hoping and praying for a successful venture. Good luck, Chrysler LTD!

[BernieBernie]

Just another reason why I will never OWN or LEASE another Ford, Chysler or GM product. Ignorance is contagious and it's quite apparent these Automakers concern remains quantity not quality!
Good Luck with building and selling junk to the uneducated.

[Howard Williams]

This small car fad is not going anywhere. I have a 2007 Chevy Malibu that gets 325+ mpg per every fill-up of 15 gallons. Based on my current needs, I would trade down to something smaller, though it is pretty nimble in the winter. America got caught up in selling a lifestyle with their cars, should've been selling superior products.

[EinChicago]

"This small car fad is not going anywhere"

Yeah. because those small car fads in the 70s (pinto, etc) and 80s, and early 90s all took hold for soooooooo long.

[Reader451]

Why does Huffpost, like far too many others, say this: "Italian automaker Fiat says it has closed a deal to take over Chrysler's good assets" in multiple stories.

The company is now majority owned by the UAW (United Auto Workers), with small percentage ownership going to governments and only 20% being held, once the deal is finalized, by FIAT. After all is said and done, Fiat will own 20% of the comapny.

I read this everywhere. "GM given bailout" the headlines scream, yet past owners now own 0% of GM, they have no stake, Zilch. "Bailouts!" scream the headlines. The productive capacity, the factories are being kept working, the complex systems of manufacturing, including land and buildings and storage and shipping systems, etc. etc. are being kept to maintain productive capacity for America. Fiat is getting twenty percent. It isnt a takeover.

[kelo]

If Chrysler was to make 20 billion in sales next year, 20 percent is 4 billion that would go to Italy instead of staying in the US. Just like Budweiser, remember all profits going to that country except for operating expenses.

[MuchMadness]

The UAW retiree trust fund will get 55%. It's not as though the profits would go directly to current UAW workers. As for Fiat, its ownership stake can rise to 35% if the company becomes profitable and pays off the government restructuring loans. The American and Canadian governments will keep a 10% stake.

The reason the media are calling this a Fiat takeover, is that Fiat is the only owner with any experience running a car manufacturing company.

[HarryParatestis]

The conservative members of the SCOTUS are a bunch of ninnies. Justice Ruth was trying to get the conservative majority to rule in favor of the bondholders. They would have done so if they took the case, and properly interpreted the current laws. They wouldn't fall for it. It would have wiped out Chrysler, and set precedent for a GM ruling. Had this happened, the GOP would have been blamed for all the job losses from two defunct car companies, and their suppliers. Thus making this economic downturn more severe. Think about it, every time someone would get into their Chrysler, or GM car, they would have been reminded that right-wing SCOTUS members, voted to liquidate these corporations. How many folks would be constantly reminded, by the Democrats, that a right-wing/GOP appointed majority of SCOTUS "caused" all those job losses. People voted, while remembering Herbert Hoover (R-1929 to 1933) in the 1960's, when the Great Depression started in the 1920's.

[WindySailor]

Chrysler had good assets? Whoda thunkit.

[EinChicago]

The irony is they did and do and in exchange, they're getting something relatively worthless in the US- small car designs that nobody will buy once the small car fad completely finishes it's current fizzle and fade.

[drymartini1]

dont worry, UAW has plenty of equity in this valuable company !!

[connorin]

Nice to see the investors at the Indiana Pension Fund get messed over by officially everyone now