Alternate Route

Mar 20, 2009 - Not So Fast

Well, somebody in this proposed alliance has the wrong idea about how things are going to play out. The big question is who.

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's chief executive that it would.

The statement said the Fiat Group "intends to make absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness to Chrysler."

By contrast, Chrysler's chief executive said Thursday the Italian automaker would be responsible for 35 percent of Chrysler's debt to the U.S. government should a proposed alliance go through.

You would think that a small detail like this would have been one of the first things made clear in any alliance talks.

Read the entire article at the Associated Press.

5:14 am | Categories: automotive news, chrysler Permalink | Alert Administrator

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