Yglesias

Fiat Bailing In To Chrysler

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It seems that Fiat may get 35 percent of Chrysler in exchange “for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S.” Given that it seems almost nobody wants to buy any car of any sort, it’s a bit hard to know why Fiat thinks this is a good time to start up a North American operation. On the other hand, Chrysler seems to be just about giving equity away at this point. And I think the Italian government in more generous with its bailouts of national champions than we are.