After a long time of discussions, Fiat and Chrysler have set up an agreement, or alliance, if you prefer. Bob Nardelli, which used to be Chrysler’s CEO, has stepped down. The new command will be under Fiat’s responsibility and there is a great chance the Italian company will delegate it to one of its best executives: Cledorvino Belini.

Belini runs Fiat operations in Brazil, a country in which it has lead the market for the past seven years. Since Chrysler needs to take fast decisions, produce smaller cars and have a leaner production process, it should be run by a man that is used to all these things.

Whoever takes the control, the fact is Chrysler has filed for Chapter 11, what will help it settle its debts with no problems with its creditors, but could drive consumer confidence down if Barack Obama did not say the own North American government is behind the company’s cars. We just have to see if car buyers have believed him. Production will stop next Monday, May 4, and will only restart when all details about the new company are revealed.

Fiat and Chrysler alliance will create a new company: 55% of its shares will be for employees, represented by an association called VEBA (Voluntary Employee Beneficiary Association), 10 % for the USA and Canada governments and 20% for Fiat. The other 15% can also be Fiat’s if the company achieves three goals: 5% for a 17 km/l car to be built in the USA (probably 500 or another one based on it), 5% for a new engine family, more fuel efficient and 5% for distributing Chrysler cars around the world.

Source: Fiat and Chrysler

Fiat and Chrysler

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