News for Chrysler the first few days of 2009 is particularly bezradostno: Despite receiving three billion dollars in federal funding, the automaker will have a difficult time of survival beyond the first quarter without repeated injection of cash. Although sitting of a new Congress and new President has become, there is no guarantee that the politicians will want to help Chrysler out of the amount of the original loan. The ingredients are angry because they see private and public companies parachute while struggling to make their own mortgage payments, hold down jobs and pay accounts.
Chrysler recently announced strategic alliance with Fiat, the transaction is to cause as much as seven Fiat and Alfa Romeo models on the American market in exchange for the granting of a Fiat 35% ownership of Chrysler LLC. But this is that the foreign ownership of Chrysler, which is unhinged some wondering aloud whether is for Congress to sustain a trespass to the person as another 19.9% of Chrysler is owned by the German auto company Daimler AG.
If Congress does not approve of the Fiat business agreement, then Chrysler would not be able to rely on new passenger cars to supplement its fleet of Italian car company. Without these new cars Chrysler does not have the means to develop new models by themselves. Without new models, Chrysler will continue to lose sales and likely the learner, the termination of the business.
But, Chrysler still can have several options available to it, even if it unravels the Fiat deal. They include:
Extension of its ties with Volkswagen. Currently supplies Chrysler minivan for Volkswagen to sell in the market of North America. When new facilities for the Tennessee Assembly of Volkswagen opens in 2011, maybe VW could supply model for Chrysler?
Stay hitched to Nissan. Little known to most people is that Chrysler and Nissan forged several agreements in 2008 they include Chrysler, providing the underpinnings for the next generation, Nissan Titan truck (using the platform of the Dodge Ram) while Nissan is building two different models for Chrysler. Nissan and Renault are essentially one company (both are managed by Carlos Ghosn), can be downloaded in Chrysler as the third leg of the stool?
Strength Of China. Chrysler has a business agreement with China's Chery Automotive Group, but this transaction was canceled last year as Chrysler financial plight worsened. Whether with Chery or some other manufacturer, Chrysler certainly can see tap one more company cars for its Dodge, Chrysler and Jeep dealers.
Eventually the Chrysler survival will depend very much on the internal restructuring of external relations. However, in this world of global consolidation, work with other car companies in the world is something that can benefit the Chrysler, and its potential partners.
Matthew c. Keegan was a free writer, who resides in North Carolina. Matt is a contributing writer for the Andy's auto sport supplier how quality parts, including the Dodge Dakota party steps [http://sites.andysautosport.com/s/side_steps/vm/dodge/dakota] and the Chrysler Aspen country steps [http://sites.andysautosport.com/s/side_steps/vm/chrysler/aspen].
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