Today’s most important news is, no doubt about that, the announcement of Chrysler and Fiat’s merger, a move which might have a lot of influence on the auto market. Chrysler, faced with serious financial problems, still managed to sell about 2 million vehicles last year (most of them in the United States), while Fiat, whose main markets were Europe and Latin America, sold around 2.5 million units. So the result of the merger will be one very important company.
Fiat, who will receive an initial 35 percent equity interest in Chrysler (with an option to raise it to 55 percent at a later date), won’t make a cash investment or funding in Chrysler instead it will share platforms with the Detroit carmaker, including city and compact segment vehicles, fuel efficient powertrain technologies and will also help Chrysler expand their market outside of the United States.
“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.
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