Fiat to Take Stake in Chrysler

[apexwc]

That's the headline in today's Wall Street Journal. I don't know much about Fiat today, is this a good move? What does everyone think? Maybe it will get the new 500 over here sooner.

[ROOK1]

I think it will get the 500 here rebadged as a Dodge Colt or something like that. But I do feel it is a good move for both companies.

[apexwc]

If they do I hope they don't over "Amercanise" it like the ugly grill and wheel covers on my Sprinter. I'd rather see it as a sub-brand. How may models does Fiat currently make?

[Jim DeShon]

I would like to see Fiat re-enter the domestic maket as much as anyone else on this site. In reality Fiat would have to take the U.S. market more seriously than they did the last time around. I last worked for Fiat in 1979 and found that the dealerships had poor support from Italy. Parts were not plentyful and warrenty issues we not addressed by the factory. You saw NO mechanical refinement on any of the Fiat models year to year. They may keep Chysler as a seperate line, only for the U.S.. Whatever they do, they better get it right because Chrysler is in the toilet already. If they want to survive in this market, they are going to have to hit the ground running ! ...J.D.

[pope]

I was at the Chrysler Advanced Design Studio today in Auburn Hills and saw prelim drawings of the 500. The car was fitted with a new advanced North American collision protection system. Other good news is that the Abarth version will make it here.

[So Cal Mark]

geez, more giant bumpers! I suppose the 82 owners will be happy

[rlux4]

You're pulling our collective legs, right Pope? That looks like a photoshop mock up to me.
It also looks like it doubles the weight of the car.
Ron

[So Cal Mark]

I would expect them to lengthen it also, and add two more doors and weight so the average US consumer will accept it

[pope]

LOL. Oh and I suppose you think thats a post 75 bumper from a Spider? Well, you might be right.

[So Cal Mark]

the LA Times reported today that the deal hinges on Chrysler getting another 3 billion dollar bailout from the US Govt, and that money would go to Fiat. Not a done deal yet

[pope]

In a letter to employees Friday, Chrysler Chairman Robert Nardelli called the Fiat alliance "a key milestone on our path to viability," while stressing that no tax dollars will go to Fiat as part of the no-cash deal. Chrysler has received $4 billion in federal aid .

[Spiddy]

In a letter to employees Friday, Chrysler Chairman Robert Nardelli called the Fiat alliance "a key milestone on our path to viability," while stressing that no tax dollars will go to Fiat as part of the no-cash deal. Chrysler has received $4 billion in federal aid .

I know this is a Fiat forum, but as we're all petrol heads, I thought I'd share the following with you

It's a shame the top boys at Chrysler are so dumb as to allow the company get in the poo in the first place. Complacentcy Rules OK!

Porsche, on the other hand, looked into the future and realised they had problems looming on the horizon - mainly in the form of not being able to afford the Development required to compete in todays automotive world, and with this, the danger of being left behind. Unlike other supercar manufactureres - Lambo and Ferrari - they didn't have the big boys to fall back on.

So they decided to buy a company with all the research and development they would ever need - Volkswagon!

But how can Porsche with a yearly turn over of £1 billion buy a company that has a £14 billion yearly turnover? This is a true David and Goliath situation.

Very quietly and slowly last year, bideing their time, they started buying VW shares untill they became the largest individual owner (the Bavarian government own 25%). At a time when every other motor manufacturer were going down the tubes and were begging for government hand outs, VW shares were holding steady thanks to Porsche secret buying.

Hedge Fund operations around the world were quick to notice this "anommoly" and, understandably, deduced that VW would soon follow the rest into the abyss. And being the greedy little bastards they are they wasted no time in borrowing as many VW shares as they could lay their hands on, selling them for around £200 a share - unbeknowingly mainly to Porsche. Then they sat back and waited for the "inevitable" price drop.

At this stage I better explain to those of you that are unaware of how Hedge Funds operate, just how these guys make thier money: Firstly they borrow shares that they believe will drop in value, and sell them on the open market. They pocket the money from this transaction and wait for the drop to occur, at which point, they buy the shares back at the reduced value, give them back to the original owner plus a small lenders fee and pocket the remaining profit. All this has to be done in a set time frame. Simple.

Except this time, the shares didn't drop and because the fund managers were having to buy the shares back to meet the deadlines impossed by law, the value rocketed to £1000 per share!

Now was the time for Porsche to show thier hand and one October Sunday (stock markets are closed on Sundays)
last year they announced to the world press that they were buying VW shares in a bid to take them over. Monday morning arrived to panic and pandimonium as the Hedge Fund guys were frantically trying to buy up what few shares were available.
At this point Porsche, feeling benevolent towards the poor Hedge Funders, made a restricted number of shares available. The Hedge Funds had no choice but to buy.

Once the buying frenzie was over the shares returned to normal and Porsche once again started buying - slowly and quietly.

They now own well over 50% of VW making them the controllers of the 3rd largest motor manufacturer in the world. Not only this but they made over £6 billion on thier stock market dealings along the way!

[So Cal Mark]

sub-prime stocks! it worked so well with real estate, why not for loans to buy other companies!

[pope]

Whats funny about this is GM owns 10% of Fiat which will own 35% of Chrysler.

[So Cal Mark]

I thought GM used their 2Bl opt out to bail from the Fiat deal a few years ago?