Fiat Vice-President confirms Chrysler talks

Wednesday, January 21, 2009 at 2:01 am

Fiat’s Vice-President and the heir to the Italian auto empire confirmed on Tuesday (January 20) that the company is in talks with US carmaker Chrysler, news agencies said, and Fiat shares were suspended amid media reports of a possible partnership with the US company.

The ANSA and Apcom news agencies quoted John Elkann, a member of Fiat’s founding Agnelli family, as saying that “it’s no mystery we are talking and we have been talking for a while.” Fiat shares were suspended from trading as the Milan stock exchange opened Tuesday pending a statement from the company after reports surfaced of a possible partnership with Chrysler.

Elkann did not give details on the negotiations, saying that more information would come from the upcoming statement and a Fiat board meeting on Thursday, ANSA reported. Fiat spokespeople were in a meeting and not immediately available to confirm Elkann’s comments.

Media reports say that the Turin-based automaker could take a stake in Chrysler. The Financial Times reported one person involved in the talks said Fiat could take a 35 percent stake with an option to later by a majority in the troubled U.S. carmaker.

Unnamed officials familiar with the discussions were quoted as saying by The Wall Street Journal and Automotive News that under the possible deal Chrysler would have access to Fiat’s engine and transmission technology.

Chrysler spokeswoman Lori McTavish said in a statement Monday that “in today’s economic environment, talks are going on between companies in all industries ours is no different.” McTavish said Chrysler as a policy “does not confirm or disclose the nature of its private business meetings.”

Fiat Group SpA, which makes Fiat, Lancia and Alfa Romeo vehicles, is trying to re-enter the United States market. The company has expressed interest in bringing its Fiat 500 compact car and the Alfa Romeo brand to the US market.

Chrysler, which is 80.1 percent owned by Cerberus Capital Management LLP, has been hurt by its reliance upon slow-selling trucks and sport utility vehicles and analysts have said it may not survive the year as an independent company despite receiving a $4 billion government loan.

(With inputs from agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Fiat Vice-President confirms Chrysler talks

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