Comments on: Public to revolt if government assists FIAT

By: geni

geni — Tue, 27 Jan 2009 10:01:55 +0000

It does seem strange that Fiat, despite still posting quite substantial profits (~$US360million last quarter, even as revenue tanked 44%) would need any government assistance. Fiat is far from ‘going under’, its deal with Chrysler is the bargain of the century. 35% of the company (and access to its dealership network) for the cost of giving access to some of their platforms. If Chrysler go under, Fiat loses nothing, in fact they gain, as 35% of whatever money they make from liquidating Chrysler will go to Fiat as a major investor. Just shows how desperate Chrysler is at the moment.

Just remember, Fiat in the quarter that just finished made more profit than Toyota. Sure, they’ve got $US6 billion in debt, but by most car manufacturers measure, thats change behind the couch (GM has over $US60 billion, and a total asset worth of less than $US60 billion, ie its worth a negative amount of money atm).

If Fiat get anything, it should only be a credit line from the government, bailing out a profitable company is a slap in the face for the Italian people otherwise.

By: Jester

Jester — Tue, 27 Jan 2009 08:01:52 +0000

This BAIL_OUT will be known in a decade or so as the biggest rort in the history of mankind.
So much taxpayers money will end up in private hands shareholders pockets that lot of people will turn out very rich, very quickly, while the car company workers and the similar sorts this is suppose to help will end up poor and probably unemployed anyway.

By: Yianni

Yianni — Tue, 27 Jan 2009 01:49:48 +0000

I don’t see how FIAT can lose anything from this partnership?

They didn’t spend a cent for the 35% of Chrysler it was a direct exchange with FIATS product range. This venture can only be good for FIAT if things work out over there. If they don’t then FIAT simply packs its bags and goes back to Italy.

Maybe the funds given by the government should come with a condition to only be spent in Italy.

By: FRUGAL_ONE

FRUGAL_ONE — Mon, 26 Jan 2009 23:52:33 +0000

Well most if not all other auto-makers around the world are getting a GovCo assistance in these tough times.

Sure, give FIAT the money, BUT they MUST pay it back when the times are good again.

Only fair!

Cheers

F-0

By: T

Mon, 26 Jan 2009 22:49:13 +0000

Why would it? This deal with Chrysler is not costing them anything in terms of money?

By: Zorro

Zorro — Mon, 26 Jan 2009 22:43:27 +0000

Fiat to avoid going under have reached out to a life raft named Chrysler, only to discover the life raft is a boat anchor, and will quickly drag them down.