According to
Fiat Group CEO Sergio Marchionne, in an interview with the Wall
Street Journal, Fiat's alliance with Chrysler can be
compared to a
'lottery ticket' that could be worth nothing if the
American automaker does not recover.
By February
17, Chrysler will present its industrial and it will
insert its agreement with Fiat in order to obtain a 4
billion dollar loan from the U.S. government. Marchionne
confirmed that the deal with Chrysler includes no
payments. Fiat will supply the potential partner with
technology to produce compact cars with efficient
motors, and will obtain a 35 percent share in return.
Sergio
Marchionne said Fiat is still studying the
vehicle-production operations of Chrysler and then will
turn to its due-diligence analysis of its finances. He
explained that they will not "take one dollar from
Chrysler" until they finish paying back their loan to
the government. "Without confidence in the possibility
of helping Chrysler to get out of this crisis, we won't
do it", said Marchionne.
If Chrysler
obtains the necessary concessions from the unions and
creditors, Fiat could invest 3 to 4 billion dollars in
technology for the American company in the upcoming
years. "We need Chrysler to be structured in a way that
once all of these operations are concluded, the lottery
ticket will pay off. I do not want to go through the
next five years owning 35 percent of nothing, the final
goal is to create value for Fiat shareholders".
|