Will Fiat Ever Get to Buy Chrysler?

Coming out of bankruptcy in 2009, it seemed like nobody wanted Chrysler. Detroit's No. 3 automaker lacked the strong products of Ford (NYSE: F  ) or the global scale of General Motors (NYSE: GM  ) , and many wondered whether it was worth saving. Italian automaker Fiat (NASDAQOTH: FIATY  ) ended up with control of Chrysler -- mostly because nobody else wanted it.

Fiat CEO (and now Chrysler CEO) Sergio Marchionne has worked a minor miracle with Chrysler, as sales have been strong following an unlikely high-speed makeover of Chrysler's moribund product line. Now, Marchionne would like to fully merge Chrysler with Fiat -- but two things stand in his way: a Delaware judge and a giant trust controlled by Chrysler's old nemesis, the United Auto Workers.

Investors had been hoping to see a Chrysler IPO this year, but now the whole deal may be in question. In this video, Fool.com contributor John Rosevear outlines the latest developments -- and offers his view on when (and if) Fiat and the UAW will be able to agree on what's needed to get this deal done.

Chrysler's sales have been surging in the U.S., but they're still tiny in China. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", names the two global giants poised to reap huge gains in China's booming auto market. You can read this report right now for free -- just click here for instant access.


Read/Post Comments (5) | Recommend This Article (1)

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  • Report this Comment On August 07, 2013, at 6:05 PM, vet212 wrote:

    The only way Fiat should be allowed to buy even a hamburger in this country is cash in advance and let Americans run all the show including Fiat's Italian operations

  • Report this Comment On August 07, 2013, at 6:51 PM, Jim85035 wrote:

    Will Fiat Ever Get to Buy Chrysler? Of course they will. Obama loves to give American tax dollars away at 50 cents on the dollar.

  • Report this Comment On August 07, 2013, at 7:35 PM, SkepikI wrote:

    I was a Chrysler guy for more than 20 years. Since I bought a used 67 Barracuda in 73 (geez, I wish I had kept that car!). Last one a minivan in 95. A great admirer of Lee Iaccoca who saved them the first time. But I have to say, this time Chrysler ought to go to the ash heap of history. One bailout too many. I could care less how good their products are now. Will Fiat "get" to buy Chrysler? I'm not sure I would wish that even on Fiat.

    JR, I am very critical and hold a grudge for Government Motors (for good reason I think) Chrysler is two steps below GM in my opinion. Given their many missteps over at least two decades and the fact they already got a second chance and could not keep out of trouble, don't you think a collection of Curly, Moe and Larry are driving Chrysler and Murphy is riding shotgun?

  • Report this Comment On August 07, 2013, at 11:55 PM, shawnm64 wrote:

    Fiat wants to make Chrysler even worse that it already is,would not be a good move as no 1 wants more reliant k cars,this is about as good as fiat makes cars !

  • Report this Comment On August 08, 2013, at 11:51 PM, singaporenick wrote:

    Fiat has some of the most prestigious car brand sin the world,including Ferrari and Maserati,and can only add quality to the Chrysler stable.

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