Fiat: We Won't Walk Away From Chrysler
Italian automaker Fiat said that it will stick with its agreement to buy into Chrysler, despite yesterday's Supreme Court ruling staying the deal.
"Fiat won't walk away from Chrysler," Fiat spokesman Gualberto Ranieri said in Milan, the Associated Press reported.
Fiat has the option to exit the deal if it is not consummated by June 15.
Fiat's loyalty does not emanate from pure altruism: The Italian automaker is in a weakened position because its plan to take over Opel fell through. Fiat now needs Chrysler. Not as much as Chrysler needs Fiat, but Fiat needs Chrysler's production capacity to grow.
Without Fiat, Chrysler probably will have to liquidate. The only way it made it through its light-speed bankruptcy was with the promise of the Fiat tie-up.
Supreme Court Associate Justice Ruth Bader Ginsburg sided with three Indiana pension and construction funds in issuing the stay yesterday. They opposed the merger. She can lift the stay herself or refer it to the whole court. The stay gives the court time to consider the Indianans' objections to the deal.
June 9, 2009; 9:36 AM ET
Categories: The Ticker | Tags: chrysler, fiat
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