while Chrysler can expand their product range to include marketable small, economical, low-pollution cars.
According to press reports, Fiat will have an option to boost their stake to 55% at a later date.
In a joint statement, Fiat, Chrysler and Chrysler’s majority shareholder Cerberus Capital Management L.P, said they have signed “a non-binding term sheet to establish a global strategic alliance.”
The pact “would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrains, and components to be produced at Chrysler manufacturing sites,” the companies said. Under the terms of the deal, Fiat would make available their distribution network in key growth markets. “Substantial cost savings opportunities” would be available to the alliance, the companies said.
At the same time, Chrysler and Fiat design executives will begin meeting this week to determine the North American portfolio created by their new alliance.
“The months following we will meet with the design studios at Fiat and figure out” what vehicles from the Fiat stable will be adapted to the U.S. market, said Ralph Gilles, Chrysler design vice president. He spoke at the Automotive News World Congress
One car in particular that may be imported is the Fiat 500, a popular small car in Europe that draws on the styling themes of the 1960s Fiat 500.
“The Fiat 500 has taken Europe by storm. They can’t make it fast enough.” Gilles said he and his wife drove the 500. “It is such a fun package. I think Americans, given the chance, will fall in love with this thing,” he said.
Gilles said the lines of communication between the Chrysler and Fiat studios are wide open.
“There is a lot of collaboration going on. The guys are really enthusiastic. They want to see what we got, and I want to see what they got. That is pretty much where it is right now,” he said.
