Internal confusion seems to be the topic of the day at Chrysler. Yesterday, the company proudly trumpeted that Fiat, the Italian automaker, would take on 35% of Chrysler’s U.S. Government debt as part of their strategic alignment.
While the move of Fiat partnering with Chrysler made very little business sense to me, the thought of Fiat taking on debt seemed even odder. Hey, what do I know – I’m not an automotive executive.
The Italian automaker Fiat said Friday that it won’t assume Chrysler LLC debt — current or future — in deal for a 35 percent stake, contradicting statements from Chrysler that it would.
The Fiat Group statement said it “intends to make absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness to Chrysler.”
The lifeline Chrysler currently is feeding off of may come to a quick end in a matter of weeks as the company needs to show the U.S. government how they expect to return to profitability. With confusion on the Fiat deal coming into the mix, Chrysler may now have an even harder time supporting their claim of viability.
Related posts:
- Fiat sticks to its guns, will see through the Chrysler purchase
- Chrysler tells Canada “Give us money or we take our toys and go home”
- Chrysler files bankruptcy court motion to eliminate 789 of its 3,200 US dealerships
- Putting the Chrysler 53% sales drop into perspective
- Having been unplugged for almost 48 hours I've missed out on a lot.