Jan27
The Chrysler Fiat(sco), Fiat is U.S. Bound.
Under the new alliance Chrysler LLC and Fiat S.p.A. will bring seven new vehicles to North America. three as Fiats or Alfa Romeos and four with Chrysler brands.
According to sources who have seen the product-sharing agreement. The new vehicles will be built using current Chrysler plants in North America and sold through select Chrysler, Jeep and Dodge dealerships.
Four Fiat platforms are included in the new plan, the microcar known as the A through the D mid-sized segment. Nothing has been said on when or how many cars will be made but teams from both companies have been hammering out the details for release in April.
Last week both companies said Fiat would take a 35 percent stake in Chrysler and start making Fiat 500 at Chrysler's Toluca, Mexico plant that was supposable up for sale.
Chrysler's Toluca plant will be retooled for the Fiat 500 , the plant currently produces the Dodge Journey and the soon to be discontinued Chrysler PT Cruiser. Chrysler announced that the PT Cruiser will be up for sale this summer, though we don’t see many companies waiting in line for the chance to own it.
Government to stop aid In a letter sent late last week to President Barack Obama , Sen. Robert Menendez, Democrat from N.J., suggests that Chrysler be forced to give back loan money if a "foreign" company gets control of the automaker. “In no way should the U.S. tax payer be forced to bail out a foreign car company or aid in the exploitation of government loans. It is crazy to think that a foreign company can get a free ride” states Sharon Shkori a senior analyst in automotive industry.
Chrysler so far has already received $4 billion in government loans and is seeking an additional $3 billion. An additional $1.5 billion is going to Chrysler Financial.
Chrysler and Fiat must summit a restructuring plan to the Obama administration by Feb. 17 In order for the government loans to be considered.
In addition, Chrysler continues to negotiate a $1.3 billion bridge loan ($1.6 billion Canadian) with the Canadian government. Chrysler expects the Canadians will require concessions similar to those required by the U.S. government.
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