Chrysler CEO Robert Nardelli told stakeholders in a letter that this groundbreaking agreement would provide Chrysler with access to Fiat's line of popular, stylish and fuel-efficient vehicles and would bolster their case for receiving an additional $3 billion in federal bailout loans from the U.S. Treasury.
Fiat CEO Sergio Marchionne was somewhat vague about the agreement. "All I remember is that Robert and I went to a, how do you say, gentlemen's club in Detroit. Bouzouki Club, I think. Next thing I know, I am waking up feeling sticky and hung over with a copy of a signed contract tucked into my underwear," said Marchionne. "Apparently, I own 35% of Chrysler and I have the right to increase my share to 55%. Why would I want to do that?"
Chrysler had reportedly been negotiating with a variety of potential partners, including GM and Nissan. Chrysler had not been successful in any of those merger attempts.
Sources close to the negotiations said that Fiat met with Chrysler hoping to secure a deal comparable to the one that they negotiated with GM. In that deal, GM paid Fiat $2 billion to not merge with them.
Cal Barbee, of Barbee Chrysler Dodge Jeep in Medina, Ohio said the blending of the product lines would help both sides. "Long as we re-name them Chryslers, I have no problem selling them Fiats on our showroom floor," said Barbee. "Plus we've got a couple hundred minivans and SUVs we can send to Rome or wherever tomorrow."
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