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April 25, 2008 |
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CHRYSLER LLC: In Talks with Fiat SpA Over Alfa Romeo Production Chrysler LLC has initiated talks with Fiat SpA over a possible cooperation agreement under which Chrysler will produce the Italian auto manufacturer's Alfa Romeo cars in its U.S. Factories, Reuters reports, citing German newspaper Handelsblatt. The talks, Reuters says, is now in the advanced stage. A Chrysler spokeswoman, however, dismissed the report as speculation, saying "there could be other partnerships with other carmakers," Reuters relates. Chrysler earlier announced a production alliance with Japanese automaker Nissan, the paper reveals. As reported in the Troubled Company Reporter-Europe on March 27, 2008, Fiat entered into discussions with Detroit's auto manufacturers on sharing production of Alfa Romeos in the U.S. Fiat's chief executive officer Sergio Marchionne said that production of Alfa cars will start by 2011 or 2012. Meanwhile, Alfa, which will start distributing and selling cars in the U.S. cars next year, will have to absorb losses until production starts with a partner. Fiat had to manufacture in the U.S. because of the weakness of the dollar against the euro. Fiat is also preparing to transfer its Iveco division to the U.S. along with the relaunched Fiat 500 compact car. About Fiat Turin, Italy-based Fiat SpA -- http://www.fiatgroup.com/ -- (BIT:F) is principally engaged in the design, manufacture and sale of automobiles, trucks, wheel loaders, excavators, telehandlers, tractors and combine harvesters. Through its subsidiaries, Fiat operates mainly in five business areas: Automobiles, including sectors led by Maserati SpA, Ferrari SpA and Fiat Group Automobiles SpA, which design, produce and sell cars under the Fiat, Alfa Romeo, Lancia, Fiat Professional, Abarth, Ferrari and Maserati brands; Agricultural and Construction Equipment, which is led by Case New Holland Global NV; Trucks and Commercial Vehicles, which is led by Iveco SpA; Components and Production Systems, which includes the sectors led by Magneti Marelli Holding SpA, Teksid SpA, Comau SpA and Fiat Powertrain Technologies SpA, and Other Businesses, which includes the sectors led by Fiat Services SpA, a publishing house Editrice La Stampa SpA and an advertising agency Publikompass SpA. Outside Europe, the company has subsidiaries in the United States, Japan, India, China, Mexico, Brazil and Argentina, among others. About Chrysler Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/ -- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. |
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