The gist, hopefully this joint venture won’t be anything like the infamous Alfa Romeo GM that left the Italian brand with the wrong side of the stick. But a FIAT/Chrysler team will mean smaller cars in the U.S. which means EVs will be introduced from the companies.
The Numbers. According to the Wall Street Journal, Fiat could have a 35% stake in Chrysler, with the option of increasing it to 55%. Fiat would help Chrysler in retooling a plant to produce one or more Fiat models for the U.S. market, as well as provide engine and transmission technology to help Chrysler introduce new, fuel-efficient small cars. The deal does not include lending any money to Chrysler or Cerberus, Chrysler’s main holder, besides retooling the above mentioned plant.
Bets anyone? It would be interesting to see who would win the market. On the one hand, the Fiat 500 is already produced and has a strong brand recognition, even in the U.S.. On the flip side, and electric Lotus a la Chrysler makes sense, with Tesla’s Roadster that has been gathering steam and press coverage.
Makes us wonder in what shape would GM have been had they accepted Carlos Ghosn’s offer of share stake last year…