Fiat and Chrysler in partnership talks: Report
Fiat is talking with Chrysler to form strategic partnership that could lead to Italian car maker taking a stake in its US peer. Carmakers to drive in 50 new models
By Agencies |
MILAN: Fiat is talking with Chrysler LLC to form a strategic partnership that could lead to the Italian car maker taking a stake in its U.S. peer, an industry publication said, citing people familiar with the matter.
Fiat shares were trading 5.52 percent lower at 4.4575 euros. They had been trading below 6 percent before the news.
Fiat could give Chrysler access to platforms, engines and transmissions to help the U.S. car maker overcome its problems, Automotive News Europe said on Monday.
Fiat was not immediately available for comment.
Fiat Chief Executive Sergio Marchionne told an industry publication in December that Fiat needed a partner to survive the crisis.
Chrysler, which is openly seeking alliances and partnerships as it struggles to survive a sharp drop in demand in its home market, did not refute the report.
"In today's economic environment, talks are going on between companies in all industries - ours is no different," Chrysler said in a statement.
The Detroit-based automaker said it does not "confirm or disclose the nature of its private business meetings" as a matter of policy.
"Beyond those partnerships and alliances already announced, Chrysler has no further announcements to make at this time," Chrysler said.
Apart from Ferrari and Maserati, Fiat does not sell cars in the United States.
Before the crisis hit the car industry, Fiat had been looking for ways to enter the United States and had talked to U.S. automakers about the possibility of using some of their production lines.
Owned by private equity firm Cerberus Capital Management, Chrysler saw its sales fall 30 percent in 2008.
It shut down all its plants for a month at the start of the year to shore up cash and cut inventories of unsold vehicles.
After getting a $1.5 billion loan from the U.S. Treasury, its finance arm is offering zero percent financing for the purchase of a range of Chrysler vehicles.
Fiat shares were trading 5.52 percent lower at 4.4575 euros. They had been trading below 6 percent before the news.
Fiat could give Chrysler access to platforms, engines and transmissions to help the U.S. car maker overcome its problems, Automotive News Europe said on Monday.
Fiat was not immediately available for comment.
Fiat Chief Executive Sergio Marchionne told an industry publication in December that Fiat needed a partner to survive the crisis.
Chrysler, which is openly seeking alliances and partnerships as it struggles to survive a sharp drop in demand in its home market, did not refute the report.
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"In today's economic environment, talks are going on between companies in all industries - ours is no different," Chrysler said in a statement.
The Detroit-based automaker said it does not "confirm or disclose the nature of its private business meetings" as a matter of policy.
"Beyond those partnerships and alliances already announced, Chrysler has no further announcements to make at this time," Chrysler said.
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Apart from Ferrari and Maserati, Fiat does not sell cars in the United States.
Before the crisis hit the car industry, Fiat had been looking for ways to enter the United States and had talked to U.S. automakers about the possibility of using some of their production lines.
ADVERTISEMENT
Owned by private equity firm Cerberus Capital Management, Chrysler saw its sales fall 30 percent in 2008.
It shut down all its plants for a month at the start of the year to shore up cash and cut inventories of unsold vehicles.
After getting a $1.5 billion loan from the U.S. Treasury, its finance arm is offering zero percent financing for the purchase of a range of Chrysler vehicles.
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