Fiat Says It Won't Walk Away From Chrysler Deal

[Administrator]

When the U.S. Supreme Court delayed the sale of Chrysler to Fiat yesterday it put the whole contract in jeopardy, giving the Italian automaker the opportunity to walk away if the sale isn't approved by June 15th. Fiat CEO Sergio Marchionne has, however, confirmed his commitment to the purchase, saying that it would not deter him.

"We would never walk away," he said in an interview with Bloomberg. "Never."

Late Monday afternoon Supreme Court Justice Ruth Bader Ginsburg delayed the sale but did not make clear the intentions of the court. A group of Indiana pension funds have attempted to block the sale of Chrysler to a Fiat-run group (also comprised of the U.S. and Canadian governments) by alleging that the initial bankruptcy court acted contrary to the law by putting the needs of unsecured lenders ahead of secured ones (some of which include the pension funds).

The bankruptcy court's decision was upheld by an appeals court and now the matter may go before the Supreme Court.

It is not guaranteed that the Supreme Court will hear the case but that is the speculation.

All we do know is that Fiat has an unwavering interest in the Chrysler brand and the U.S. market. This is likely due to Marchionne's belief that in a post-recession auto industry there will be far fewer major players controlling significantly larger shares of the market.

More: Fiat Says It Won't Walk Away From Chrysler Deal on AutoGuide.com

[1HotRod]

We all should be happy that Fiat is hanging in there. If not, a Chinese or some other Asian auto maker may have jumped in, and Chrysler would then become Rice-ler.

[flaharleyguy]

Originally Posted by 1HotRod

We all should be happy that Fiat is hanging in there. If not, a Chinese or some other Asian auto maker may have jumped in, and Chrysler would then become Rice-ler.

With Fiat we will be Chrysleroni instead

[RIC_SE]

All this does is extend the judicial process. The best that the Pension Funds will get is more cents on the dollar.

Meanwhile, It costs Chrysler and the tax Payers a 100 Million Dollars a week keeping the plants idled.

On one hand, Marchionne's comment is good in that they are showing they are dedicated to getting this deal done and on the other hand it is bad because it allows the Supreme Court to drag its feet and Chrysler is burning through cash during this whole process.

[theamcguy]

This is actually pretty funny. Fiat is acting like it is doing everyone a big favor by hanging in there. They are buying Chrysler lock stock and barrel for NO MONEY, zilch, nada. Oh wait they will give $2 billion for Chrysler but the US government is gving the Fiat the money. Talk about a deal. I mean if your dealer was going to give you a Challenger would you wait?

[Billski's No4]

Yeah maybe Chrysler will survive but the muscle cars won't!

Fiat CEO said it himself. "We don't need American cars running around with 5.7L engines in them, we just don't need them." So hang on to your LX platform V8 powered rides boys and girls, you'll probably be the last ones to own one.