fiat chrysler

After weeks of speculation, Fiat confirmed today that its CEO, Sergio Marchionne, will assume the same role with Chrysler once it exits bankruptcy. According to statements from the Obama administration, Chrysler could emerge from "surgical bankruptcy" in as little as 30 to 60 days, after which Chrysler's current chief executive Bob Nardelli will step down and Marchionne will step in.

If you were surprised by the "resignation" of GM chief Rick Wagoner late last month, get used to the idea. Chrysler reportedly has some major management changes in store as well, including a new seven-member executive board including representatives from Fiat and the Obama administration's automotive task force. But while Bob Nardelli may stay on to chair that board, Chrysler's next CEO may not even be American. Sources close to the ongoing negotiations between Chrysler LLC and the Fiat Group suggest that part of the new arrangement could see Fiat CEO Sergio Marchionnne taking the top job at the Detroit automaker with which he's jumping into bed.

While the 2011 Jeep Grand Cherokee wowed the crowds in New York, what lies beneath could be a key to Chrysler's recovery. The new 3.6-liter V6, called Pentastar after the company's five-pointed-star logo, replaces seven - count 'em, seven - of Chrysler's aging engines, and stands as the outcome of several years of development.

Not long after the President concluded his televised press conference today, Chrysler released a statement saying that it and Fiat have already reached an "agreement on a framework of a global alliance".

Everybody remembers the first two rules of Fight Club. But what about the rest of them? Like the fourth rule: "Only two guys to a fight," and the fifth rule: "One fight at a time, fellas." In mergers and acquisitions terms, only two parties to a merger, and one merger at a time. Well it looks like the fellas over at Fiat might want to watch the movie read the book over again, because they appear to have forgotten the rules.

The ink isn't even dry yet on the deal between Chrysler and Fiat, but design executives from both automakers are slated to begin meeting next week to discuss collaboration on future products and how Fiat's current offerings can be adapted for Chrysler's needs.

For over a decade, ownership of Chrysler has been bouncing back and forth over the Atlantic like an Airbus jet. Since its founding in 1925, it was independently owned and operated right out of Detroit, then Daimler bought controlling interest in 1998, only to sell it to U.S.-based Cerberus Capital Management. Now Fiat is poised to assume a 35% stake in the company. So the question is, who holds controlling interest? Well in short, nobody does. Daimler holds nearly 20%, Fiat's taking over 35%, leaving Cerberus with 45% - the lion's share, but short of controlling interest.