Chrysler’s CEO Bob Nardelli said that the potential partnership deal with Fiat could save 5,000 North American manufacturing jobs and could be worth up to $10 billion.
“We estimate the cash value of Fiat’s contribution to be between $8 and $10 billion considering the cost to develop these vehicles, platforms and powertrains from scratch,” Nardelli said in a e-mail to Chrysler employees.
The $10 billion value comes from the areas of purchasing, engineering and contribution of technology Nardelli said.
Those familiar with deal already know that Fiat has agreed to take a 35 percent stake in Chrysler without any cash investment. The deal would give Chrysler access to fuel-saving Fiat technologies and the overseas market.
In a separate report, the Obama Administration hasn’t decided to approve the tie-up between the two automakers. According to the top U.S. Treasury Secretary advisor Steven Rattner, the administration is currently reviewing the deal.
“We need to understand better where Fiat is at and whether that is potentially a realistic deal or not before we know where to go next on that one,” Rattner said.
Source: Detroit News