Fiat: We won’t assume any of Chrysler’s current or future debt

Contradicting Bob Nardelli’s statement that Fiat would assume Chrysler’s debt, Fiat released a statement earlier this morning saying that it “intends to make absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness to Chrysler.”

Nardelli said yesterday that Fiat would be responsible for 35 percent of Chrysler’s debt to the U.S. government if the proposed partnership between the two automakers follows through.

The non-cash 35 percent stake in Chrysler will give Fiat access to Chrysler’s production facilities and sales network in the United States. Nardelli said that the partnership would bring Chrysler new technology and other items worth up to $10 billion, a contribution that would equal the loans Chrysler is seeking from the government.

He said that the partnership would help Chrysler leapfrog five to six year ahead in the development of fuel-efficient vehicles.

– By: Omar Rana

Source: Detroit News