Something just isn’t adding up here. Maybe you can figure it out. Chrysler confirmed yesterday that it’s selling 35% of itself to Fiat — actually it should be more like “selling” (in quotes), since it’s not actually getting any money.
But today it’s reported that in order for the company to complete the deal, it wants another $3 billion from the government, on top of what it hass already received.
WSJ: On Tuesday, Chrysler and Italy’s Fiat confirmed they had reached an agreement on an alliance that would give Fiat a 35% stake in the American company. Fiat would not put any cash into Chrysler but would provide technology and vehicles that Chrysler could build and sell in the U.S.
But the deal becomes binding only if Chrysler gets $3 billion more in financial help from Washington, said the people familiar with the terms of the agreement.
If Chrysler really needs $3 billion already to survive, that’s one issue. The Obama administration can deal with that.
But what’s with the Fiat deal being contingent on Chrysler raising more money? Surely there’s someone out there that would be glad to take a big free chunk in Chrysler and, say, demand only $2 billion along with it? No?