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Chrysler + Fiat ?!

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They gave Fiat 35% equity and 3 board seats and got no cash. And, it is contingent on another $4B in US taxpayer funds being loaned to Chrysler. I'm not sure I get it.

If the fundamental problem is overcapacity in the industry, bringing new capacity into the market will make things worse
 
Some comments that were posted in response to that story:

The TARP money will be used to refit the existing plants in the US. Thereby giving Fiat a good position for a buyout and replacing existing Unions with what they choose.
This is a good deal, just doesn't look like it yet.

There should be huge layoffs of half the Chrysler workforce as the jobs go overseas. Obama did not get a chance to nationalize the car industry yet.
 
Fiat/Chrysler plans electric car - Autocar.co.uk

Fiat and Chrysler are working together on an electric car, which is likely to be based on Fiat’s Micro-Vett concept.

The all-electric concept was seen at the British motor show last year and was based on the Fiat 500. Fiat CEO Sergio Marchionne has announced his new five year business plans for the firms and it includes at least one all-electric car.

Chrysler board member Alfredo Altavilla said that R&D on the car was “going very well” and he confirmed the electric propulsion technology would come from Chrysler, although no further details were revealed.

The Micro-Vett concept used a 22kwh lithium-ion battery pack, giving a range of up to 75 miles and a top speed of 60mph.

The 500 has been a huge seller for Fiat, so if done right this could be a good introduction to EVs for a lot of people.