Chrysler-Fiat Deal Valued at 10 Bil.
DETROIT (Reuters) -- Chrysler LLC's proposed deal with Fiat SpA is worth up to $10 billion for the cash-strapped U.S. automaker and could preserve 5,000 North American manufacturing jobs, Chief Executive Bob Nardelli said Monday
We estimate the cash value of Fiat's contribution to be between $8 and $10 billion considering the cost to develop these vehicles, platforms and powertrains from scratch," Nardelli said in a e-mail to employees.The value of the proposed deal would come from synergies in the areas of purchasing, engineering and contribution of technology, Nardelli said.
The No.3 U.S. automaker has a non-binding deal with Italian automaker Fiat, which has agreed to take a 35% stake in Chrysler in exchange for access to technology and overseas markets.
Under the terms of the deal, Fiat will not pay cash for the stake in Chrysler, which is 80.1% owned by Cerberus Capital Management.
"Production of vehicles for Fiat in North America will allow Chrysler to increase its plant utilization, helping to preserve and create in excess of 5,000 manufacturing jobs," Nardelli said. "The overall contributions from Fiat and the synergies we realize will far exceed the value of the government loans."
Chrysler and larger rival General Motors Cor have requested nearly $22 billion in additional U.S. government loans to ride out a deep plunge in the U.S. vehicle demand.
Chrysler, which has already received $4 billion in emergency U.S. government loans, is "absolutely" viable business on a stand-alone basis, Nardelli said.
The automaker has had a series of "very constructive discussions" with the U.S. Treasury and the Presidential task force on its request for $5 billion in additional aid, the CEO said in the e-mail.
On a side note ; suz, can you photoshop the Alfa MiTo GTA with 200C style headlights / grille ?
