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When Fiat Met Chrysler
The meetings occurred behind closed doors, there are no transcripts, and we'll never know exactly what transpired, but through the art of simple deduction we can logically piece together a likely scenario of Fiat and Chrysler's discussions.
(It helps if you imagine Fiat being played by Marcello Mastroianni, and Chrysler being played by Ned Beatty.)
Fiat: Ciao, ciao, thank you for meeting. This is very fun.
Chrysler: Where have you been? We've been sitting here waiting for hours.
Fiat: Really? How nice. You are very hospitable.
Chrysler: Well, as you know, we've been instructed to make a deal with Fiat by the White House. If we don't make a deal with your company, they will put us out of business.
Fiat: Interesting, interesting, yes. Do you mind if I smoke?
Chrysler: Well, here in the States, we actually don't smoke in the office.
Fiat: Yes, I see, you have a light?
Chrysler: I do, but...
Fiat: You will light my cigarette, yes?
(Long awkward silence. A cigarette is lit.)
Fiat: Thank you, thank you. Now tell me, how did your company get in this terrible predicament?
Chrysler: Well first we were independent, then Mercedes owned us and --
Fiat: (interrupting) I see, I see, so you are like those American girls who come over every summer, yes? First you get in bed with the Germans and now you will be in bed with the Italians. Ha, this is funny, no?
Chrysler: Well, to be honest, we don't find it very funny.
Fiat: You no see what I mean. Your president says you must make a deal with us, correct or not correct?
Chrysler: Correct.
Fiat: And I think I make a very funny joke. You are like one of those American girls, right? Funny, right?
(Long awkward silence. A forced chuckle.)
Fiat: Yes, see! You agree! Very funny! Okay, now let us go over our business, yes?
Chrysler: Sure, let's discuss the deal.
Fiat: Okay, My English is not so good so I make it very simple. Chrysler belongs to Fiat now. You are our company. To buy it we give you no money, no cash, no dollars, no euros, nothing. In exchange, now we run the whole thing. You get nothing, we get everything, capice?
Chrysler: Well now, that's not much of a deal.
Fiat: Let us review this one-a more time. okay? Your president say you have to make a deal with Fiat, yes? Or everybody loses their job, right? So, how does your Howie Mandel say it? Deal or no deal?
(Long, long awkward silence. A sigh is heard.)
Chrysler: Deal.
Fiat: Bene, bene. See, easy. Relax. No problem. We are through with all this business talk for the day. That wasn't so bad, was it? Now show me your daughters.
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The US has good workers, designers, engineers, and suppliers. The Japanese, South Koreans and Europeans make good use of these possibilities in their plants on US soil.
Unfortunately what has not been so good is US management. In Italy they not only make good cars ( Ferrari among other brands belongs to FIAT ), but also great textiles, shoes, clothing, woodworking machinery, shoemaking machinery , carmaking machinery and software, etc etc etc. All of this is achieved by means of good management.
They have a lot of talent in Italy and I think this will be put to good use in Chrysler.
The main point is that the success of Italian manufacturing is not at the expense of the workers. Over there, people get national health care and retirement, 4 or 5 weeks obligatory paid holiday, etc.
I think this goes to prove that with good mangement and with laws and strong unions that protect the workers, things can be done succesfully. I hope that in US these conditions will exist one day soon.
So: for the Americans, or for this "very funny" article at least, the Italians are rude, unreliable and unprofessional people.
I see !
So who can explain me why Fiat has the technology to build cars that Chrysler has not?
Why Fiat is not in such troubles, despite world crisis, in which American Auto Makers are?
And after all: who caused this world mess? American Banks, no ?
Thank you Americans to be such better than all of us.
You are 300 milions people and waste 1/4 of world energy.
Of course, because you use Ice even in cold regions, Air conditioning every where !
You "have to" drive trucks with unbelievable cubic capacity engines while we, stupid Europeans, try to use Low Emissions Vehicles.
I'm sorry but this "article" really offended me. I know that not all Americans think this way, but since I started to read about this Chrysler -Fiat possible partnership I read a lot of comments like this.
Just to let you know in Italy we can't smoke in public enclosed places since 2005 (http://en.wikipedia.org/wiki/Smoking_ban).
Yahoo news, 15 January 2009:
“Data from automakers show U.S. sales fell to 13.2 million vehicles in 2008, down 18 percent from 2007. In December alone, U.S. sales plunged 36 percent, and Nissan's slid 31 percent on year.
Although the Japanese have been expanding in China, Brazil, Russia and other new markets, they are still small compared to the U.S. and Europe.
Adding to the woes, the Japanese market, which had been stagnant for years, is also contracting. Japan sales of new vehicles fell to 3.2 million vehicles last year, the lowest in 34 years.”
Even best mileage per gallon didn’t save Japanese car industries in crisis situation.
Forget about sliding in sells of car. Let look what happens with our roads in rush hour?
How huge problems with parking lots? How much time we spending inside cars?
Cars are perfect, very convenient, excellent relict of previous century. We need to find another solution to move milliards of people.
Chrysler had to bend over and grab its ankles in this deal. Let's review. The unions were basically told to 'suck it', Fiat owns/controls Chrysler, the auto workers take it in the shorts, and most of the company's profits will now sail off overseas and not stay here. Do I have it about right?
Uhh, Obama wants the bankruptcy to leave the unions with a lot of equity in Chrysler, and he wants the evil "speculating" bondholders that were the lifeblood of Chrysler to take a massive hit in the bankruptcy. Chrysler has been in dismal shape since the 70's. If there wouldn't have been a bailout loan in 1979, we wouldn't be in this situation today. If the bailout in December 2008 didn't happen, there would have been bankruptcy then.
Fiat only has a about a 20% controlling stake in this deal, the biggest shareholders are the auto workers union themselves. Fiat needed this deal just as much as Chrysler due to low sales in Europe. They do however make good cars unlike Chrysler. The deal will only work if they can combined and make a good cheap economical car at a good price WITH low overheads. That means drastic wage and benefit cuts.
This whole process of destroying our unions , jobs , manufacturing plants is not only to destroy the unions but to delete any control over this country's policies by the American citizen..
This will most likely be deleted like the rest of my post...
Toby, I made a typo on my comment- Tony - whoops-no correct button I know about. Appology, hope someone corrects it.
Hey Tony- Let's talk about the first time Chrysler met Fiat.
Chrysler imported the French 'Simca' a tiny car, back in the 70's. Simca was affiliated with Fiat and Chrysler divested its European interest in 1978.
The Simca was basically a 'homely' hatchback design. Chrysler apparently was on the right track at the time, but the public wouldn't have it. Sleeker, bigger, bells and whistle cars were the show-stoppers.
I know firsthand, because of my stint as a national auto show model –narrator for Simca. In order to get a crowd around it, I had to practically stand on my head. I even wrote a song to the tune of “Bonnie and Clyde” dressed up like a gun moll and sang my Simca heart out. I made my mark creating a mannequin routine grabbing attention. Not only did my act wow the crowds, but Chrysler’s top brass put me in TV commercials, as well.
Now we've come full circle. The Fiat concept is back to save Chrysler? Bail outs couldn’t. Maybe the current fuel fiasco will add to the appeal. And maybe a brainy designer, 'a la' John De Lorean can make 'homely' cool.
How many Americans drive Fiats? Vision folks, let's get with it. Hopefully President Obama’s vision that Fiat will give Chrysler a global presence becomes a reality. Automakers could have had a sleek little Simca...tooling down the freeways - today.
Being bred and raised in the Motor City. Admittedly, MerrieWay holds a soft spot for automobiles.
This whole process which our government is supporting is a total and complete transfer of economy , manufacturing plants , jobs and controls to the Global Giant Empires and the partners in Foreign countries..
They are destructing any chance of Americans gaining and control over our country or way of making a living.
The union is just about non existing anymore...
What percent of our country is now own by the American citizens. 25 ...
Obama back down on another campaign promise of renegotiating the free trade bill..
But there's no more Simcas either? Unless it's something like a Chrysler or Dodge Vedette maybe?
This union will fail unless America imbraces the "small car" and ONLY if it becomes a quality make.
Can it be done with the US autoworkers Union having the biggest share holding? Answer is NO. The wages and benefits they want will kill it
Baloney. The Japanese automakers here actually provide a slightly lower wage but slightly better benefits than the Big Three. Your Nissan was likely made in Tennesee, Honda in Ohio and now Indiana.
You just wanted an excuse to blame someone besides your Republican pals, whose short-sighted stupidity enabled the American auto industry to stagger on for decades with low mileage standards and poor business practices. Democrats in Congress tried dozens of times to raise gas taxes and the CAFE standards, and the Republicans blocked it every time. LAcking any real incentive to change, the American auto industry went brain dead decades ago, and missed market changes many times: at least 1958, 1973 and the rest of that decade, 1992 and 2008. In each case, they got caught selling fuel-sucking boats when the market went for small cars.
If you intend to be a car company, it'd be a swell idea to make cars that people want to buy once in a while.
In an aside, did anyone see the advert above the comments? Need masks? Oh, for G-d's sake just wash your hands and leave your face alone.
I grew up in Chryslers and I own one now. I just hate it. They are the only maker to have a mini van with the longer body, I needed that until about a year ago, but I have the van still anyway. I prefer to keep a dog crate in the van, but I also needed the second row of seats. Most mini vans cannot accommodate the dog crate and seats beyond the driver and front passenger.
This thing gets lousy mileage, has a bad electrical system over all and it gets lousy mileage.
I am just getting close to the point where I can get out of it. I don't know what I will get next, but I seriously doubt it will be a Chrysler.
Sadly I also know people who work for other companies owned by Cerberus. No one is having fun, trust me. They hardly know what to say these days........
So much for making money with money,......
Not to worry shiela, you won't be able to get a Chrysler anymore--unless you buy a used car. There is a word in the English language: fiat.. Look it up on your favorite search engine or dictionary. BHO has disposed of Chrysler by a fiat. Fiat will decide Chryslers fate by a fiat.
Maybe Fiat will make some Chryslers in Mejico. Remember, somebody made Avantis after Studebaker-Packard folded. The Mejacano Chryslers will be a nostalgia thing.
"BHO" didn't put Chrysler out of business. They came begging for help on their own. BHO is trying to find someone with enough capital to keep Chrysler's operations going and few enough brains to take on the task. Fiat and the UAW seem to be the only ones to fit both descriptions. Good for him to salvage anything whatever out of this mess. And it's "President BHO" to you, bub. Get used to saying it for quite some time.
The other people comments here are silly. Just as Chrysler kept Jeep and tossed away the rest when they bought American Motors, certainly Fiat will keep two or three of the Chrysler lines that still sell, and flush the rest. There was a reason that Mercedes walked away from that company and let them go at a loss, just to be rid of the thing. That was a bad sign.
Fiat? Is it 1977 and Fiat's and Chryslers both suck? Or is it 2009 and they still do?
Fiat sucks less than they did. Chrysler was rated the worst car line in America by Consumer Reports. People wonder why Chrysler is going bankrupt when even the Koreans make much better cars. Chrysler deserves to go out of business they are terrible. Good luck Fiat.
Have you drive the 300 lately it's a very very nice car.
And the 500 I think have garnered Car Of the Year awards in Europe.
It's Chrysler's smaller models that suck. And the Fiat of the era when they imported them
into the US is now gone, they've improved their build quality so I've read.
There is a difference. Fiat sucks profitably, Chrysler sucks with losses.
Buying a Dodge is educational.
Now I am an expert in repairing Dakotas......every part needs repair.
Can't wait to learn to repair a Fiat-Chrysler.
Fix It Again Tony!
Have to admit that I smell Penn Central Railroad about this deal... When the legendary but nearly bankrupt Pennsylvania Railroad joined with the equally legendary New York Central in 1968, they proved that combining two poorly run, money losing companies is simply a way to lose lots more money even faster. PC staggered along with the green team and red team fighting each other for eight years, going bankrupt in 1976.
Now, a little lesson for the boneheads who are morally certain that the government can never do anything right... Taking the best of advice, and with the US railroad system collapsing in the Northeastern US, the federal government took over PC and a number of other bankrupt railroads from Chicago to New England, forming "Consolidated Rail" or Conrail. Unlike Amtrak, it was given freedoms and regulatory changes that made it a reasonable business model, shed excess trackage and the company went from losing a million dollars a day in 1976 to profitable within five years, then privatized again at $1.9 billion. Besides saving rail transportation in the Northeast, the government - we taxpayers - made a tidy profit. The two Eastern megarailroads, CSX and Norfolk Southern divided Conrail in a deal with the government in 1997.
Conrail would be a reasonable model for the current bailouts, and, if run as wisely, could even make enough money to be worth the trouble.
There's a sort of anti-italy cliché which I didnt like, and no I don't see the "hirony", Marchionne speaks perfect English because he grow up in Canada, Italy has been the first country in Europe to ban smoke from all public places, included restaurants and workplaces, just to let you know.
I thought it was bit over the top too.
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