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ReprintsChrysler backs off announcement of Fiat alliance
Follow-up statement says only 'framework' deal exists
Bradford Wernle and Luca Ciferri
Automotive News Europe
March 31, 2009 06:01 CET
Chrysler LLC has backed off its own statement announcing an alliance with Fiat S.p.A., saying the potential partners have only a "framework" accord. The disclosures came in back-to-back releases today after President Barack Obama gave Chrysler 30 days to come up with a plan to team with the Italian automaker and qualify for as much as $6 billion in additional U.S. aid. The second statement was issued about 30 minutes after Chrysler said Fiat and Chrysler majority owner Cerberus Capital Management LP had come to terms in a deal supported by the U.S. Treasury Department. Both statements were attributed to Chrysler CEO Bob Nardelli and cited "substantial hurdles to resolve." Chrysler is staying afloat on $4 billion in U.S. loans. Obama said the government will provide Chrysler the working capital it needs to get through the next 30 days. |
You can reach Bradford Wernle and Luca Ciferri at bwernle@crain.com.
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