Saturday, January 24, 2009

New Deal to Bring Fiat 500 to US


"Bailout" seems to be the word of the season for US carmakers -- and Chrysler is looking to Fiat as its new protector. In addition to the $4 billion that Chrysler has received from the US government, the carmaker will gain access to Fiat's "highly fuel-efficient powertrain technology" in return for a 35% stake in the company.

Part of the deal seems to be a conversion of one or two Chrylser plants to begin manufacturing the new Fiat 500 for the US market. (Maybe they will call it the Plymouth 500.)

It's interesting to remember that Fiat exited the US market about 20 years ago, shortly after an unsuccessful attempt to team up with Chrysler.

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