Even though Fiat SpA isn’t making any cash investment into its Chrysler alliance, the Italian automaker will get $35 million from the bankrupt automaker if the deal falls apart.
Chrysler’s attorneys have asked the U.S. Bankruptcy Judge Arthur Gonzalez to approve the fee as a part of the sale process. The bankrupt automaker said that the $35 million fee was necessary for Fiat to take part in the deal.
The fee “recognizes the enormity of the effort made by Fiat in the complex, multiparty negotiations” Chrysler said in a filing.
Chrysler’s CFO Ron Kolka said yesterday that the present value of all the engineering and technical resources that Fiat has committed to the Chrysler alliance over the next couple of years total $6.9 billion.
– By: The Daily Auto Editor
Source: Free Press