A Chrysler spokesman presented yesterday a "framework agreement" with Fiat, through which the American manufacturer tried to emphasize the progress made since January by the two companies. "It's one step closer to the definitive agreement," Chrysler spokesman Shawn Morgan was quoted as saying by the aforementioned source.
"We are pleased that Chrysler, Fiat and Cerberus have reached agreement on the framework of a global alliance, supported by the U.S. Treasury. Chrysler has consistently said that the alliance with Fiat enhances its business model that expands its global competitiveness.
The preliminary accord between the two sides stated a 35 percent stake in Chrysler to be held by Fiat, with the possibility of increasing it to as much as 50 percent. However, it seems that the stake has been reduced to 20, according to a source speaking for AFP.
"At first it will be 20% and rise gradually to 35%, according to adjustments in Chrysler's restructuring plan," the source said, confirming a Wall Street Journal report. Still, the US side will not allow the Italians to hold more than 49 percent in Chrysler until the manufacturer pays back the loans it was granted.
On the Chrysler side, things look fine and smooth, as the company's leadership seems to live under an umbrella that keeps them out of the harms way. The company seems happy it can continue "normal operations" for another month and plans to operate "as usual".
"We appreciate the willingness of the Task Force, along with industry and financial experts, to consult closely with us in order to achieve this significant step" said the company in a statement.
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