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Before Bankruptcy Chrysler Tried to Sell to Chinese, Partner with Everyone

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Before Chrysler filed for Chapter 11 late last week the automaker explored every option, including selling the company to the Chinese and forging partnerships with any other manufacturer that expressed even a remote amount of interest.

In public bankruptcy filings, made at the U.S. Bankruptcy Court in New York, Chrysler's co-president and vice-Chairman Tom LaSorda said that the company entertained offers from Chinese automakers Beijing Automotive Industry Holding Co., Tempo International Group, Hawtai Automobiles, and Chery Automotive Co.

"Chrysler sent letters to parties, primarily in China, whom we thought would be potentially interested in purchasing our assets," LaSorda wrote. "Over the next two months, several companies… expressed interest in purchasing specific vehicles, powertrains, intellectual property rights, distribution channels and automotive brands."

In the end, however, none of those companies were interested.

LaSorda also said that over the past two years Chrysler has courted practically every other automaker out there, searching for a partner. The list includes Nissan, General Motors, Volkswagen, Tata, Magna, GAZ, Hyundai, Honda and Toyota.

Many of the arrangements didn't have a leg to stand on, however, the talks with Nissan were thorough and only ended when Nissan couldn’t secure the credit needed to buy in to Chrysler.

LaSorda finally writes that a partnership with Fiat is the "best outcome," although that might be stretching the truth, as it seems Fiat is the only automaker in the world with interest in Chrysler.

The Chrysler/Fiat deal, which began back in March of 2008, is now before the bankruptcy court. Fiat didn't put any money into Chrysler but will provide $8 to $10 billion in small car technology in exchange for a 20 percent stake in the company. Fiat can get 15 percent more if it meets three benchmarks that the U.S. government has imposed, including building a 40 mpg car. That car will be a Chrysler version of the Fiat 500.

More: Before Bankruptcy Chrysler Tried to Sell to Chinese, Partner with Everyone on AutoGuide.com
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R.I.P. Dodge it was fun while it lasted.
 

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Wow, that really would have been something if the Chinese had bought it.
Actually, I'm pretty surprised they didn't. They snatched up IBM Thinkpad pretty fast when the opportunity presented itself and wow did service go into the crapper in a hurry. Total change of ethics with the change of ownership.
 

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The US itself is in such a bad way that even China doesn’t want Chrysler. Man it doesn’t look good.
The banks are still about to fail, GM is next, airlines and credit cards not far behind. Did I mention commercial real estate?
That being said this is why we may never see a new Dodge Truck again, there is just too many hits as a nation we have to take yet.
That being said I hope all of you see the Government takeovers how they have had no affect of improving what is happening except that they gain more control. We have to stand together to stop this.
 

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So Fiat doesnt even have to put up any cash. Just rebadge a stupid Euro crapmobile as a dodge and they get 15 percent.

Nice.

Cause after all, THATS what kinda car people want.
 

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So Fiat doesnt even have to put up any cash. Just rebadge a stupid Euro crapmobile as a dodge and they get 15 percent.

Nice.
That's not quite accurate.
The American car companies have ignored fuel economy and focused on the huge SUV for so long they have not one clue how to build a fuel efficient machine that moves humans from one place to another in relative safety.

The US and US car companies have the lowest fuel economy standards and averages in the world. It's shameful. But they have done this to themselves (or been pushed into it by Big Oil and the Unions.)

Fiat brings technology that Chrysler doesn't have. That technology isn't free.

And what are they getting? 15% of nothing if you ask me. If their technology and branding and management can make Chrysler into a profitable business, I say more power to them.
Several others have tried this and failed miserably. Looks like Cerberus is out their whole nut and there's some smart folks in there.

My guess is that in another 5-10 years Fiat will be saying "why the hell did we buy into that?" Just like everyone else has said who touched Chrysler.
 

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That's not quite accurate.
The American car companies have ignored fuel economy and focused on the huge SUV for so long they have not one clue how to build a fuel efficient machine that moves humans from one place to another in relative safety.

The US and US car companies have the lowest fuel economy standards and averages in the world. It's shameful. But they have done this to themselves (or been pushed into it by Big Oil and the Unions.)

Fiat brings technology that Chrysler doesn't have. That technology isn't free.

And what are they getting? 15% of nothing if you ask me. If their technology and branding and management can make Chrysler into a profitable business, I say more power to them.
Several others have tried this and failed miserably. Looks like Cerberus is out their whole nut and there's some smart folks in there.

My guess is that in another 5-10 years Fiat will be saying "why the hell did we buy into that?" Just like everyone else has said who touched Chrysler.
The only thing I remember about Fiat was what the name means.... FIX IT AGAIN TONY. :) :hehe: I don't remember them building anything reliable for the USA... and weren't they also related to Renault... what did they build that lasted in the USA?? I hope they can really make things better.
 

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That's not quite accurate.
The American car companies have ignored fuel economy and focused on the huge SUV for so long they have not one clue how to build a fuel efficient machine that moves humans from one place to another in relative safety.

The US and US car companies have the lowest fuel economy standards and averages in the world. It's shameful. But they have done this to themselves (or been pushed into it by Big Oil and the Unions.)

Fiat brings technology that Chrysler doesn't have. That technology isn't free.

And what are they getting? 15% of nothing if you ask me. If their technology and branding and management can make Chrysler into a profitable business, I say more power to them.
Several others have tried this and failed miserably. Looks like Cerberus is out their whole nut and there's some smart folks in there.

My guess is that in another 5-10 years Fiat will be saying "why the hell did we buy into that?" Just like everyone else has said who touched Chrysler.
So, by your post, mine was entirely true and accurate.
They get 15% and dont put up any cash.

FYI they arent bringing any technology. They will build teeny tiny cars that Americans have a history of shunning.
 

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Come on now, Fiat owns Maserati and Ferrari... it's not all bad. And have you seen their hydrogen powered tractor? IMO it's sexy as all get-out :thumbsup:
 

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This Fiat deal is starting to smell to me. I think these cars are going to be built outside of
the USA which means no factories here and no jobs for Americans.
 
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