Fiat and Chrysler said today they have signed a nonbinding agreement for a strategic alliance that would give the Italian auto empire a 35 percent stake in the troubled U.S. carmaker.
The two companies said in a joint statement they would share technologies and vehicle platforms. Under the proposed alliance, Fiat would not invest cash in Chrysler but would provide access to its successful small-car platforms, as well as to its more environmentally friendly and fuel-efficient engines.
This is a great deal for both companies (altho there's no guarantee this will 'save' Chrysler!) Fiat gets a US footprint, and some construction capacity here in the US (unused/underused Chrysler plants), as well as a distribution network, and Chrysler (and its dealers) get some small cars to sell.
The new Fiat 500 is, from all reports, a GREAT little car. The Alfa Romeo marque has some exciting new cars that Fiat is dying to get to the American audience. Lancia has always been a favorite of mine, despite their lack of exposure to the US market (which will sadly probably continue.) Ferrari and Maserati will (in all likelihood) not contribute much to the partnership, altho Chrysler has an historic linkage to Maserate, with some interesting cars from the 80's, so who knows.
Whatever happens, this is good news for both business junkies and car freaks (I am in the subset where those overlap). Chrylser gets a shot at survival and some great cars, and Fiat gets a foothold in the US market after a quarter century absence.
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