BREAKING NEWS! BREAKING NEWS!Chrysler Corporation and Italy's Fiat Automobiles SpA announced today that Fiat will take a 35% stake in the ailing Chrysler Corporation. The deal in which no money will exchange signifies a dramatic move by Chrysler/Cerberus to align its business model for the world stage. Chrysler has been struggling to find profitable small vehicle platforms and has no real presence in the global marketplace.
Chrysler hopes to gain access to gain access to Fiat's small vehicle platforms for the U.S. market and create opportunities to market in other foreign markets in which it has no distribution. Fiat, although strapped for cash has it's eye's on the U.S market to reintroduce itself to anxious Americans starving for more fuel efficient vehicles. Fiat riding the success of recently introduce vehicles has found itself swept up in recent months with declining sales like most auto manufacturers.
Daimler Benz still holds a 19% stake in Chrysler and will continue to hold that position as the proposed deal works its way through the appropriate Commerce Department channels.
This report will be updated as more information comes forward.
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