Tuesday, January 20, 2009

Fiat to get 35% of Chrysler for No Cash

I don't get.

MarketWatch posted this:

LONDON (MarketWatch) -- Fiat (IT:F:4.48, -0.23, -4.9%) is going to take a 35% equity interest in Chrysler, the companies and Chrysler's owner Cerberus Capital Management said Tuesday in a tentative agreement that needs U.S. Treasury approval. Chrysler will get "access to competitive, fuel-efficient vehicle platforms, powertrain, and components" to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities, the companies said. In addition, Fiat would provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future, the companies said.

what's the voodoo?

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