Dealers Pleased with Chrysler-Fiat Alliance

Chrysler's announcement that will form a strategic alliance with the Italian automaker Fiat pleased the American company's dealerships who explain that such a move could also help them remain in the business. Moreover, a number of Chrysler dealerships pointed that a potential merger with General Motors could close the doors of several showrooms which obviously meant thousands of job cuts and a serious hit for the domestic automotive industry.

"I was not all happy with that (potential) GM-Chrysler merger," Chuck Eddy, owner of Chrysler and Dodge dealerships in Youngstown, Ohio, told The Detroit news. "It felt like cannibalization,” he added, explaining that such an alliance could lead to several closures when it comes to dealerships, suppliers and other companies working with the two carmakers.

"But this is an endorsement of the viability of our long-term health," Eddy added referring to the newly-formed alliance. “This shows the government we are valued. It utilizes our excess capacity. We can offer a broad range of product on the showroom floor. It's all good, if you ask me."

Despite the fact that Chrysler didn't say too much about the Fiat partnership, most dealerships are please with this move and explain that the Italian carmaker has the ability to help them raise sales, especially thanks to its global image.

"Most of what I know is really more from media reports than the conference call,"Jim Arrigo, a dealer in the West Palm Beach, Fla., told the same aforementioned source. "Dealers are generally relieved and happy. People have been sitting on pins and needles for some time. This now feels like momentum because Fiat has a great image, and there seems very little overlap," Arrigo added, expressing his confidence that Fiat's involvement will really help Chrysler in its restructuring plan forwarded to the government last December.