chrysler has no value?

[luvmysxs]

Fiat gets 35% stake in Chrysler for no cash
Fiat Group, Chrysler LLC and Cerberus Capital Management L.P. Announce Plans for a Global Strategic Alliance
Auburn Hills, Mich., Jan 20, 2009 -- Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.

The alliance, to be a key element of Chrysler's viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required. Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base.

The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler's long term viability plan. Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury.

As a consideration for Fiat Group's contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler's current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

"This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved," the CEO of Fiat Group, Sergio Marchionne said.

"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits , including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan . The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace , sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability," said Ron Gettelfinger, President United Auto Workers (UAW).

"We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs," said General Holiefield, Vice President, United Auto Workers (UAW).

[soonercruiser]

Worthless?...... Not exactly!
What they are saying is, with all that Fiat is giving Chrysler, it's worth 35% of Chrysler-Ceberus right now.
-Just glad I'm not a stock holder...althought this will like make Chrysler's stock go "up" in the short-term.

[crusierdad76]

wonder how long it will take for the union to some how monkey this up????

[Hooligan]

Originally Posted by crusierdad76

wonder how long it will take for the union to some how monkey this up????

[soonercruiser]

Already done been "Monkeyed Up"!
Matter of fact, it's actually the "Gorilla" in the mix. Hope they watch "King Kong" again to see how to handle the gorilla!

[crusierdad76]

well you knew it couldn't take to long I mean we got to keep them union benneys up and going

[rszappa1]

Just remember what Fiat stands for....Fix It Again Tony...

[soonercruiser]

I didn't realize about the "F-I-A-T" acronym until I read an article in USA today. Wow! And the USAToday article didn't make it sound like Fiat is doing all that well in Italy by itself!
(So, it's not a "match made in Heaven" either. Kinda like two disgruntled divorcees meeting in a bar late at night!)

[luvmysxs]

if i had a company worth millions i'd be damned if i just give away 35% of it for nothing and thats exactly what chrysler did.

[stdavid]

Originally Posted by luvmysxs

if i had a company worth millions i'd be damned if i just give away 35% of it for nothing and thats exactly what chrysler did.

Sadly my friend Chrysler has no value. Those days are gone for all the big 3.
Their debts are far greater than their assets.
I work at Chrysler by the way.

Hours and hours were put into trying to re work the PT. The engine compartment size was one of the biggest issues years ago, but not the only one.
The reality of the car world is you have to design and sell at least 6 cars from one frame.
The PT could not be built on any other frame but it's own without totaly destroying the basic design. What would have been produced looked terrible and had NO connection to the PT.