Fiat’s chief executive has insisted he does not want to run Chrysler should a proposed alliance between the two automakers proceed.
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Sergio Marchionne said in a results conference call he had “no intention” of running Chrysler and added that Fiat hoped to complete due diligence on the US automaker “in a few weeks” after tentatively agreeing to take an initial 35% non-cash stake to share technology, manufacturing and distribution.
“I have absolutely no intention of running Chrysler,” Marchionne said, according to a Dow Jones report.
He also said he hoped he would not be called before the US Congress for any future hearings on continuing federal aid to the auto industry.
The Fiat-Chrysler tie-up is conditional on Chrysler presenting an acceptable viability plan to Congress on 17 February.
Marchionne said due diligence would be completed ahead of the federal deadline, and stressed the need to win concessions from all Chrysler stakeholders, including employees.
Dow Jones noted that Fiat had stressed retooling of Chrysler plants would have to be funded by the US firm but Marchionne said building Fiat cars in the US “would be on Fiat’s account”, as it is with other manufacturing joint ventures.
“Fiat is not paying in cash, it’s paying in technology and infrastructure,” he said. “The technology will be made available…but application of that infrastructure in the US market will be borne by Chrysler.”
Dow Jones said Marchionne defended the proposed deal despite being one of the leading advocates of industry consolidation.
“I don’t think the shutting down of Chrysler…would have helped anyone,” he said when asked why the US auto maker should not be allowed to liquidate and ease the global glut of capacity.
For Rob Golding’s view, click here
