Fiat CEO to meet with U.S. Auto Team in Washington
Restructuring expert Steven Rattner of the U.S Treasury Department’s auto team asked Fiat SpA Chief Executive Sergio Marchionne to meet with members of the team about the proposed alliance with Chrysler LLC. In a meeting that will take place tomorrow in Washington, the members will discuss what the Italian automaker would contribute to the Chrysler if the two seal the deal.
The auto team serves as the advisor to the White House on the restructuring of the U.S. automotive industry. So far, Chrysler has received $4 billion in loans form the U.S. government and is seeking an additional $5 billion. General Motors has received $13.4 billion in loans as well. Both companies are required to submit progress reports by March 31 showing some headway on the quest for viability.
Chrysler’s last viability plan displayed some platform-sharing with Fiat’s small cars. The Italian automaker has proposed to share the some of its platforms and technology with Chrysler in return for a 35 percent stake in the company. Cerberus Capital Management currently owns 80.1 percent of the Auburn Hills automaker.
Chrysler, who has been voted the most likely to fail out of the major U.S. automakers, may require a partnership in order to succeed. Cerberus has also held talks with GM and Renault-Nissan about possible mergers. The ailing automaker has described in its viability plans that a partnership or merger could greatly aid the company’s recovery.
Source: The Detroit News