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Chrysler, Fiat May Merge

From Tim Healey, About.com GuideFebruary 4, 2011

It's not a given, but Chrysler and Fiat CEO Sergio Marchionne is hinting that once Chrysler refinances loans from the U.S. government that have held back profitability, and once there's an initial public offering, Fiat Auto and Chrysler Group could merge.

Of course, just because Marchionne says that the two could become a single entity based in the U.S. within a few years doesn't mean it will happen. A lot of dominoes have to fall just the right way. And no doubt, there is some trepidation among those who remember how poorly the DaimlerChrysler merger worked out. Indeed, it was the eventual failure of that merger that helped land Chrysler in bankruptcy in 2009

No matter whether this is just talk or Marchionne is hinting at future plans, it's a situation worth watching.

[Automotive News]

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