[freeyellow2000]

03/31/2009, 1:26 PM
Chrysler News
Cerberus to give up stake in Chrysler for Fiat alliance

President Obama made it clear on Monday that Fiat must be part of Chrysler’s plans if it hopes to survive beyond the next 30 days, but Chrysler’s owners, Cerberus Capital Management, apparently won’t be a part of the future Chrysler – should the ailing automaker make it.

According to The Detroit News, Cerberus has agreed to give up its 80.1 percent stake in Chrysler should the Michigan automaker ink a strategic alliance with Italy’s Fiat. However, Cerberus would retain its stake in Chrysler Financial, with the first $2 billion in profits earmarked for a government repayment.

It remains unclear exactly how Cerberus’ ownership of Chrysler would shake out but, as Fiat is set to gain a 35 percent share of Chrysler, something had to give. Daimler, Chrysler’s former partner, still retains a 19.9 percent stake in Chrysler.

The Obama administration gave Chrysler a 30-day time limit to partner with Fiat or face Chapter 7 bankruptcy liquidation. While initial reports are optimistic the two auto giants can combine in a month’s time, there are still plenty of hurdles that threaten the success of the deal.

It looks like Cerberus is abandoning ship and they know they can't get anymore low interest loans.


Here any article on the matter
Fiat execs come to U.S. to hash out new Chrysler deal

 

[toyomoho]

Cerberus wants out of Chrysler which represents about 7% of Cerberus holdings.

They want in on the finance side of Chrysler and GMAC.

 

[Jegan_V]

It looks like Cerberus is abandoning ship and they know they can't get anymore low interest loans.


Here any article on the matter
Fiat execs come to U.S. to hash out new Chrysler deal

Good, because it appears they have no idea how to run a car company. If they knew just a little bit about the auto business they wouldn't have bought Chrysler because of how badly Mercedes mismanaged it. If they've driven the cars and seen the competition at the autoshows they would have known how terrible the Chrysler product lineup is. It seems at least Obama and his auto task force knows that Chrysler is in such horrible shape that on its own its doomed.

 

[REN69]

Here's the kicker... Fiat was supposed to be looking into opening a plant in Ontario Canada, now with all the BS going around with this whole bailout debacle, Chrysler is threatening the CAW with closing up shop and leaving Canada completely if they don't give up a lot.

A Chrysler/Fiat alliance would pretty much ensure that Fiat will now open this plant somewhere in the US instead of Canada... Beauty! :disappoin