Chrysler-Fiat Pact Good News for Fuel Economy, Emissions - If Chrysler Survives
By John O'Dell January 20, 2009
Looks as though Chrysler has found someone interested in it for purposes other than picking the meat from its bones.
Italy's Fiat, itself just recently recovered from a near-death experience (remember just four years ago, when GM, worried that Fiat was close to collapse, paid $2 billion to walk away from an option to buy the company?) has signed a deal for a strategic partnership with Chrysler.
No money is expected to change hands, but the strategic partnership agreement opens each company's product, intellectual and marketing resources for the other to dip into.
We'll leave it to our colleagues at Edmunds' AutoObserver to opine on the business sense of a cashless deal that apparently leaves Chrysler still looking for several billions of dollars to make it through 2009.
But we're heartened by the proposition that, if the beleaguered third member of the U.S. auto-making industry does survive, its tie-up with Fiat could bring a whole new batch of fun to drive, fuel-efficient and environmentally friendly cars to our shores.
Chrysler, Jeep and Dodge dealerships in the U.S. could become outlets for upscale Alfa Romeos and the economical (40+ mpg) Fiat 500
mini-car (right)
- the European Car of the Year in 2008.
Fiat isn't likely to be too interested in Chrysler's cars, but the company has underused factories in the U.S. that Fiat can use, and it provides the Italian company easier entry to this market than it would have had going it alone.
Chrysler also would benefit from Fiat's know-how in building small engines that deliver both fuel economy and performance - expertise Chrysler seems to be missing.
And who knows, maybe there's a secret lust for Dodge Ram duallies and Chrysler 300s in Fiat's European markets.
John O'Dell, Senior Editor
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