[AT] Ford V-10/Now Dodge

[Stephen Offiler]

This ought to be interesting, Charlie...

First of all, the deal apparently isn't complete yet.  According to an
article in WSJ:  "The non-binding deal would involve no cash payment
by Fiat, and the proposed April closing is contingent on Chrysler
meeting U.S. government conditions for existing and hoped-for federal
aid."

What effect will it have on Dodge, Chrysler, and Jeep?  Well, this is
being painted as a barter deal.  Chrysler gets access to Fiat's small
cars, and Fiat gets access to Chrysler's US distribution network.  The
hoped-for effect is that there will still BE a Dodge, Chrysler, and
Jeep.  With rose-colored glasses firmly in place, expect to see new
(and pretty good) small cars at your local ChryCo dealership.  Fiat
has come a long way since they departed US shores in disgrace many
years ago.  I don't personally see how this will impact what we know
as Dodge trucks or Jeeps, again, other than keeping them around.

Lots of problems.  Euro emissions and crash standards are about as
stringent as ours in round numbers but they are DIFFERENT.  There's a
bunch of engineering that needs to happen to get Fiat-based cars onto
US shores.  Timing... couple years perhaps.  What's going to keep
Chrysler afloat in the meantime?

Steve O.


On Wed, Jan 21, 2009 at 11:57 AM, charliehill
<charliehill at embarqmail.com> wrote:
> I heard yesterday that Fiat is taking controlling interest in Dodge in a
> deal where they get 35% of the company stock in exchange for ZERO cash.
>
> I wonder what effect that will have on Dodge, Crysler and Jeep as we know
> them?
>
> Charlie
>
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