Top new models for SA

From Renault's new Alaskan bakkie to the latest models at the Frankfurt motor show bound for SA.

Electric cars in SA

The debate on whether or not Electric Vehicles (EV) are viable in South Africa rages on.

Fiat shares tumble on Chrysler news

2009-03-30 11:51

Shares in Italian auto giant Fiat tumbled on Monday after the US govenrment warned that its planned partner Chrysler faced an uncertain
future and reportedly set a deadline for a Fiat-Chrysler tie-up.

Fiat's shares fell 5.03% on the Milan stock exchange, which was sharply down by 3.89% overall.

A task force appointed by US President Barack Obama said Monday in agrim assessment that Chrysler faced a challenging future on its own and was unlikely to remain viable unless it manages to find a partner.

The US administration gave Chrysler 30 days to reach a deal with Fiat to qualify for more US government loans, the New York Times
reported Monday.

The two companies in January signed a preliminary deal for Fiat to take a 35% stake in Chrysler.

"In essence, the US administration is forcing Chrysler into an alliance with Fiat, but reversing the order: first an alliance and then, possibly, the funding," an analyst at Mediobanca was quoted as saying by Dow Jones Newswires.

"That implies more risk for Fiat, which would be taking a stake in a company in a worse financial state than previously thought, which could
improve if the government were to give it more funding."


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