Fiat, Chrysler: So Much for Melting Ice Cubes

As expected, Fiat (FIATY.PK) has announced it will not walk away from a carload of free stuff. As you might recall from yesterday's post, Chrysler's May sales were better than the industry's and now Fiat says they will wait. So much for the melting ice cube approach taken by Treasury to say the sale had to be done right away or sales would drop and FIAT would walk. And now they control GM (GMGMQ.PK). Wonderful.

MILAN/WASHINGTON -- Italian automaker Fiat SpA will not walk away from its deal to buy bankrupt Chrysler LLC, a spokesman said on Tuesday after the U.S. Supreme Court order put the deal in doubt.

Both Chrysler and the Obama administration have said a long delay could kill the deal and result in Chrysler's liquidation. Fiat can abandon the deal if it does not close by June 15.

Taking over Chrysler is a big part of chief executive Sergio Marchionne's ambitious goal of vaulting Fiat, Europe's number-six automaker by unit sales, into the top ranks of world car makers.

"Fiat will not walk away from the deal if it isn't completed by the June 15 deadline," its spokesman said.

Disclosure: no positions

Comments

[speculari:]

Sergio has not yet expended a single lira on this deal!

Jun 11 05:55 AM