At about the same time Barack Obama was figuring out where to store his paper clips and Post-it notes in the Oval Office, Fiat S.p.A. and Chrysler LLC were busy trying to inaugurate a new partnership that almost no one saw coming.
News that Fiat will take a 35-percent stake in struggling Chrysler (the majority of which is owned by Cerberus Capital Management) could not come at a better time. If any of Detroit’s Big Three would fall, Chrysler would be the first, and this alliance at least gives the Pentastar a glint of hope for survival. A dearth of new product suggested that Chrysler was merely buying time before the creditors came knocking or its government loan money ran dry. Even with the $4 billion it received last month from the U.S. government, Chrysler’s near-term prospects for recovery appeared slim to none.
Some might say they still appear that way. With little in the way of global sales to generate cash flow—unlike, say, GM—Chrysler’s lackluster U.S. lineup looks even more dire. Why, for example, the company ever thought it could replace the Neon compact with a chunky-looking, off-roader wannabe like the Dodge Caliber is beyond us. At best, you could maybe say that the Caliber is better to drive than the old Neon, although that wouldn’t be saying much. But the Caliber’s aggressive mini-SUV looks will always make it a bit player compared to more conventionally styled segment leaders such as the Honda Civic or Toyota Corolla.
Keep Reading: Chrysler and Fiat Alliance: Future Product Speculation - Car News
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