Chrysler, Fiat Respond to Obama but Deal Not Wrapped Up Yet

Troubled automaker Chrysler just put out a joint statement with Fiat which, frankly, is a little puzzling.

The headline is: "Chrysler LLC Statement in Response to the Announcement by the Administration, U.S. Treasury and President's Auto Task Force."

Chrysler chief executive Bob Nardelli is quoted as saying, "We are pleased that Chrysler, Fiat and Cerberus (Chrysler's private-equity owner) have reached agreement on a global alliance, supported by the U.S. Treasury."

But that's old news. We knew the two automakers have an agreement in principle. At the end of the statement, Nardelli says, "While we recognize that we still have substantial hurdles to resolve, Chrysler is committed to working closely with Fiat, the Administration, U.S. Treasury and the Task Force to secure the support of necessary stakeholders."

So, on the face of it, this statement looks like it reads: We heard the president's comments, we are working toward what he wants but we haven't quite wrapped up the Fiat deal yet.

-- Frank Ahrens
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