Fiat's Marchionne Is Bound for Detroit
March 31, 2009
DETROIT -- Fiat chief Sergio Marchionne immediately headed to Detroit Tuesday, a day after
President Barack Obama,gave Chrysler and Fiat only 30 days to pull together a deal if they had any hope for obtaining another $6 billion from U.S. taxpayers.
A Chrysler spokesman late on Monday announced a "framework agreement" with Fiat, reflecting progress since the two sides presented the broad outlines of a prospective alliance in January. "It's one step closer to the definitive agreement," a Chrysler spokesman said.
Under that framework, however, the Fiat's initial stake would be lowered to 20 percent from the originally planned 35 percent, according to various media reports. The government will allow Fiat to own no more than 49 percent of Chrysler.
Still, Fiat would pay nothing for its stake but would provide Chrysler with access to vehicle platforms and engines, including fuel-efficient ones, that would be built in U.S. plants.
Marchionne, who met earlier this month with Obama's automotive task force, is expected to make a stop in Washington for talks with U.S. government officials.
Posted by Michelle Krebs at 6:21 AM under Chrysler , Personalities | Comments (0) | digg this | Seed Newsvine
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