Fiat is “totally focused” on reaching a deal with Chrysler, a well-placed source has said, even though top executives have said there are alternatives.
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“Inside the company, everyone is totally focused on this deal,” the anonymous company source told Reuters.
The US government has given Chrysler until 30 April to agree a restructuring plan which would see Fiat take a minority stake in return for small car platforms and technology and, later, access to the US automaker’s US factories and dealer network.
The administration last month allocated up to $500m to help Chrysler operate to the end of April. But, if the two automakers can’t reach agreement, the Obama administration has threatened to stop funding Chrysler and let it go bankrupt.
Fiat chief executive Sergio Marchionne made yet another trip to the United States early this week for talks in Detroit and Washington. He is expected to give an update on the talks when Fiat announces first quarter results tomorrow, Reuters said.
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By GlobalDataMeanwhile, Italian Prime Minister Silvio Berlusconi has expressed support for Fiat’s efforts to agree the deal with Chrysler in order to return to the huge US market where its brand has been absent for over 20 years.
“I don’t know what the odds are, but I hope that this operation goes ahead and gives Fiat a big boost and the possibility to count for something in the world and the American market,” he told Reuters.
Chrysler bondholders and the Canadian Auto Workers union are the main roadblocks at the moment, refusing to make the concessions required by the US government’s autos task force.
Marchionne last week threatened to walk away from the deal if those parties did not play ball.
According to Reuters, Fiat chairman Luca Cordero di Montezemolo reiterated on Tuesday that the group did not exclude looking for an alternative to Chrysler.
“We look with interest at everything, we don’t exclude anything,” he was quoted by local news agency ANSA as telling reporters at an event in Milan. “We look at everything that is worthwhile.”
However, the source told Reuters that Fiat’s staff were focused on Chrysler and making it their top priority.
Reuters noted that recent news reports have fuelled speculation about the likely candidates for a ‘Plan B’, including General Motors and its overseas operations, primarily Opel, but Fiat has denied any interest the German automaker, which includes UK subsidiary Vauxhall.
