Although we forecasted a series of big earthquakes in automotive industry this year, we didn't expect so early. Having just entered 2009, Fiat kickstarted the music chair game. Today both Fiat and Chrysler announced that they have formed an alliance in which Fiat is taking 35% equity in the US company. This mean Cerberus will reduce its stakes to 45.1%, followed by Fiat's 35% and Daimler's 19.9%. It is believed that Fiat has the option to increase its stakes to 55% in the near future.

You might wonder why Fiat is interested in the loss-making Chrysler, whose stakes are virtually worthless. In fact, Fiat does not need to pay any cash for the deal. Instead, it only needs to offer its small cars and fuel-efficient engines for Chrysler to produce and sell in America. Currently, Chrysler found it is difficult to sell its big cars and trucks in the weak market. As it has no small cars at all, and it has failed to form a joint-venture with Chery due to its poor financial condition, it has no choice but to collaborate with Fiat.

To Fiat, the additional demand from Chrysler's equivalent models could help its suppliers (like its own Magneti-Marelli) and lower component costs. Moreover, the excess capacity of Chrysler could be used to produce Fiat 500 and Alfa Romeo models for sale in the US market. This ease the long-existing headache of the Italian company which has been thinking for years how to re-enter the US market. Fiat CEO Sergio Marchionne said before that local production would be necessary to make business sense for Alfa Romeo to return to US. Chrysler's dealer network will also benefits Fiat and Alfa Romeo, just like Fiat's sales network in Brazil will benefit Chrysler.

Both firms did not specify which models will be shared, but AutoZine estimates Fiat 500 will be the first one, as it should be the easiest to comply with US safety regulations without major re-engineering. Moreover, Fiat has experience to convert the 500 into Ford Ka, so building one more version won't take long. The next car could be a B-segment car based on Fiat Grande Punto / Alfa Romeo MiTo, then a larger C-segment car based on Fiat Bravo / Alfa Romeo 149.

Fiat inspectează uzinele Chrysler

Fiat S.p.A. a demarat, săptămâna aceasta, o inspecţie pe linie de mediu şi siguranţă în uzinele Chrysler LLC din SUA, ca o ultimă procedură necesară înaintea preluării celor 35% din acţiunile companiei, potrivit unor surse din interior, citate de Automotive News.
Fiat a angajat pentru acest pas Environ Holdings Inc. pentru a efectua respectivele studii, raportul final urmând să precizeze dacă constructorul american ar putea fi expus legilor privind protecţia mediului şi celor de protecţia muncii.
Alianţa Fiat – Chrysler, anunţată în luna ianuarie, a fost ultima soluţie la care au apelat cei de la Chrysler pentru a salva compania de la faliment. Compania a primit un împrumut guvernamental de 4 miliarde de dolari şi a mai cerut suplimentarea acestuia cu alte 5 miliarde. Alianţa ar trebui să aducă o reducere de costuri consistentă pentru ambele companii, prin utilizarea platformelor comune, a componentelor şi a pieţelor de desfacere.
Vânzările celor două companii au scăzut în ultimele luni, dar cele ale Chrysler au atins cote alarmante, cu mai bine de 40% faţă de anul anterior.