Fiat tells Chrysler to pay their own debt...
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03-20-2009, 08:35 AM
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Fiat tells Chrysler to pay their own debt...
MILAN (Dow Jones)--Fiat SpA (F.MI) said Friday it won't take on any of Chrysler's debt as part of the proposed alliance between the two companies.
In a statement sent to the Italian stock exchange Fiat said: "the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler."
Thursday, Chrysler Chief Executive Bob Nardelli said in a video clip that the Fiat partnership will allow Chrysler to pay back U.S. taxpayers more quickly, as Fiat would assume responsibility for 35% of all of Chrysler's debt to the U.S. government. Under the proposed terms, Fiat would take a 35% stake in Chrysler and provide the auto maker with its own car technologies.
The partnership would also give Chrysler and Fiat a combined purchasing budget of $80 billion. "It is a perfect fit," Nardelli said.
Here's the source: http://online.wsj.com/article/BT-CO-...20-703360.html
Now, is it just me or as a CEO of a major corporation like Chrysler, wouldn't you make sure that you are on the same page with your potential partner before you publically anounce that they will pick up 35% of your debt should a merger go through? This to me makes Nardelli look like a total idiot.
Why would you publically announce something that obviously hasn't been decided yet between your potential business partner? This just speaks volumes in my mind about how poorly run and clueless some of these companies are, even the CEO has no idea what's going on! Our tax dollars hard at work. This was just announced this morning, I'm sure they'll be better articles on it.
In a statement sent to the Italian stock exchange Fiat said: "the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler."
Thursday, Chrysler Chief Executive Bob Nardelli said in a video clip that the Fiat partnership will allow Chrysler to pay back U.S. taxpayers more quickly, as Fiat would assume responsibility for 35% of all of Chrysler's debt to the U.S. government. Under the proposed terms, Fiat would take a 35% stake in Chrysler and provide the auto maker with its own car technologies.
The partnership would also give Chrysler and Fiat a combined purchasing budget of $80 billion. "It is a perfect fit," Nardelli said.
Here's the source: http://online.wsj.com/article/BT-CO-...20-703360.html
Now, is it just me or as a CEO of a major corporation like Chrysler, wouldn't you make sure that you are on the same page with your potential partner before you publically anounce that they will pick up 35% of your debt should a merger go through? This to me makes Nardelli look like a total idiot.
Why would you publically announce something that obviously hasn't been decided yet between your potential business partner? This just speaks volumes in my mind about how poorly run and clueless some of these companies are, even the CEO has no idea what's going on! Our tax dollars hard at work. This was just announced this morning, I'm sure they'll be better articles on it.