Fiat Secures Full Control of Chrysler

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Jan. 2 (Bloomberg) -- Edmunds.com Senior Analyst Jessica Caldwell and Bloomberg's Jamie Butters and Matt Miller discuss Fiat's deal to buy Chrysler on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Analyst, and, our very own matt miller, mr.

Carr guy himself.

Let's talk about the economics of this thing.

Chrysler is ironically putting up some of the money.

It reminded me of, remember the headline a couple of weeks ago?

Is a little different, because the whole point of this, as you know, is so that fiat can get access to the $12 billion cash pile at chrysler.

They will use some of it to do the deal.

Fiat is paying $1.75 billion to the autoworkers trust and the rest of the money will come from chrysler.

Chrysler will pay a lump sum and -- some three special dividend and $700 million in four annual installments between now and 2018. this is a masterstroke.

Everyone expected -- somebody in graphics loves the dodge viper.

We have been showing me that showing this.

Everyone knew sergio would get this done before the ipo actually happened.

That was a negotiating tactic.

The fact he would get a better deal than most deaths than most analysts thought, he was going for four.

The trust wanted six.

They say that because they say they want more than they would get as a bargaining tactic.

4.35. 700 of that is going out over four years.

Really stretching it out and getting chrysler to foot the bill for the lion's share.

It is clear what chrysler brings.

What does fiat bring to chrysler?

Fiat brought to chrysler the opportunity to exist.

Obama and his car team was trying to decide whether or not to keep chrysler.

Was it important enough to the u.s. economy to bailout this company e -- company?

They decided it was but they needed a competent seat -- cdo.

They felt fiat could bring small technology that would help chrysler.

One of the things they had to do to get five percent of the ownership was produce a car and make that in the u.s.. they build out a small car lineup.

Matt is really excited that some of the opportunities going forward to use alpha technology and dodge vehicles and vice versa with the maserati.

There is opportunity for them.

Think about what you just said.

Building a maserati on a chrysler jeep platform.

Some would say that is sacrilegious and others would say it is in.

Sacrilegious in the first place is also a testament to what a great job.

She cherokee is a great car.

It is really a great that form.

If maserati is going to go out and build a giant station wagon for moms, they might as well do it on a station wagon.

What does this ultimately means for consumers, starting with incidents in the u.s. and running conversation?

It is good for consumers in the united states.

What got chrysler in the business was that the market shifted and they were not prepared to have smaller cars.

That has changed.

Products should come quicker to market.

There is more to draw from.

A broad, that story heats up in europe as well.

They've a smaller suv.

Chrysler has colonies on.

It is a winning record consumers out there.

We talked about some of the innovations were cross-platform opportunities.

Any others you are looking forward to?

The skies the limit.

Country is becoming a lot more accessible for people.

People like the brand names.

They like the italians ran.

Having that to draw from will help chrysler.

It has been a bit limiting in the u.s.. if you will say that, you have to say maserati will build a car on a chrysler platform.

They paid $36 billion in the 1990's. 40% of chrysler is valued at 4.5. it is really only worth $10 billion.

One of the things jamie brought up earlier which is an amazing thing, sergio is going to invest over $12 billion in beefing up his italian manufacturing capacity.

When europe is buying fewer cars than it has had in the case, and everybody else -- we get this beauty.

An incredible rival, and it only cost $50,000, a carbon fiber tub.

It is incredible.

It almost makes me feel like he is sounding like a modern-day carpet bag he is basically buying chrysler on the cheek.

He will take the cash out of the u.s. and invest into fiat, which is losing money.

What is your take?

He is a smart dealmaker.

He turned them around and then got into chrysler and turned it around.

Taking the money, that has scary echoes for chrysler.

When they bought chrysler, chrysler had a lot of cash.

That was used with several other deals.

Airbus got some of the cash.

That is a concern.

If you look at what marchionne is doing, he is trying to build a global automaker.

Two thirds or halfway there.

A good footprint in south america.

He saved all of those jobs.

Let's not forget about the fact there are a lot of men and women working for chrysler in detroit.

He has championed the city of detroit.

He has partnerships to people, all these people.

He is taking the money out now.

They would have no jobs otherwise.

I'm curious.

The fact we are now seeing this deal instead of an ipo, is there risk chrysler will lose some of the talent making some positive changes their?

-- there?

The truth is, chrysler was worth more if it is all integrated than a standalone hybrid company.

The story with chrysler is you make a ton of money when times of good and are on the brink of death when times are bad.

In theory, they need to be part of a -- an organization.

If they could be in a larger group, maybe they could be large enough to make it through.

That has always been the

This text has been automatically generated. It may not be 100% accurate.

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