Chrysler Forms Tie up With Fiat

Experiments are not new to Chrysler – one of US biggest automaker. Over the past years, Chrysler has come up with new owner and new management, but this time its a 'Business Alliance'. Chrysler has formed alliance with Italian automaker FIAT. This tie-up is being seen as lifeline for Chrysler that was recently on the verge of filing bankruptcy.

With this deal, the Italian automaker will have 35% of Chrysler. The other benefits that this alliance will offer include regaining of Alfa Romeo and Fiat in U.S markets. This would be possible through Chrysler's dealership network.

What is that will benefit Chrysler through this business alliance. Fiat will offer Chrysler product & platform sharing, small and big cars and would also bring fuel-efficient technology and the engineering that goes into its small cars.

Commenting on this agreement, Chrysler chairman, Robert L. Nardelli said, "It creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits.” It is believed that such an agreement between the automakers would help them develop a better business. Now this is to be seen that whether Fiat comes out to be a lifeline for Chrysler or not.

$4 Billion Loan Given to Chrysler

After GM received the auto loan, it's Chrysler's turn. Chrysler LLC got $4 billion loan on Friday. The loan was given by federal government in order to rescue the automaker from collapse. The $4 bn loan is provided on low-interest to Chrysler. Though Chrysler had urged for at least $7 billion loan, it has been given just $4 bn of the total $ 17.4 auto loan that was approved by the Bush government. Chairman and Chief Executive of Chrysler, Robert Nardelli said,"This initial loan will allow the company to continue an orderly restructuring, while pursuing our vision to build the fuel-efficient, high-quality cars and trucks people want to buy,"

According to sources, there were few issues in Chrysler's application process that delayed the loan procedure for Chrysler. The recession in auto industry has affected the automaker badly. With the news of auto loan of Chrysler, it is hoped that Chrysler will get a little better.

Chrysler to Close Down For A Month

Chrysler is finding it hard to handle the emerging crisis in the auto industry. On Wednesday, Chrysler announced that it will close down all the production work for a minimum of one month. The 30 factories under this automaker will remain closed till 19th of January, 2009. Though its a normal practice for the Detroit's automakers to close the production plants for two weeks at the end of every year, this news is being seen as the consequence of recession in global auto economy. With 46,000 workers employed in Chrysler's factories, this auto news has stirred ripples amongst the auto industry employees.

While Chrysler will close down for one month, Ford has also made the announcement to remain closed for three weeks. The extension of holidays truly depict the deploring condition of the auto industry. Seeking immediate help, Chrysler and other automakers had asked the Bush administration to intervene for auto bailout. An immediate loan for this month of $7 billion and $4 billion was demanded by Chrysler and G.M respectively.

Closing down this week, Chrysler production will remain shut till January 19, 2009. It is also possible that some of the factories might remain closed for a little longer than that.