During his meeting with Obama’s auto task force, Fiat CEO Sergio Marchionne said that his company will “add value” to Chrysler through an alliance supported with government loans. After his meeting with Steve Rattner and Ron Bloom, advisers to the U.S. Treasury, Marchionne told reporters that he was encouraged by the groups engagement with the auto industry problems.
“We think we are adding significant technology and products to the offerings of Chrysler,” Marchionne said. “With them they get a fair chance” of making it out of their current situation, reports Automotive News.
Marchionne said that in return for a 35 percent of Chrysler Fiat will provide “cash equivalents” consisting of small car platforms and fuel-efficient technologies. He said that Fiat will not inject any cash into Chrysler.
Chrysler so far has received $4 billion in government loans and says it needs another $5 billion by the end of March.