The chief executive of Fiat SpA told the White House auto task force Thursday that the Italian automaker could help Chrysler LLC recover and repay the billions it is borrowing from the government.
“We can add value,” Fiat CEO Sergio Marchionne said Thursday after meeting with key members of the task force to discuss the deal with Chrysler. “We think we’re adding significant technology and products to the offerings of Chrysler. With them, I think they’ve got a fair chance of making it out.”
In spite of the U.S. auto market’s collapse in the past two months, Marchionne said he was as optimistic now about the potential benefits of an alliance between the two carmakers as he was at the start of the year when Fiat and Chrysler’s majority owner Cerberus Capital Management LP concluded a preliminary agreement.
“Nothing has happened that would change my mind,” he said after the 2 1/2 -hour, closed-door meeting, which Fiat officials characterized as friendly and informal. Steve Rattner, a Wall Street restructuring expert, and former labor adviser Ron Bloom, ran the meeting, peppering Marchionne with questions not only about the proposed deal with Chrysler but also about European market and industry trends.
Marchionne said he was encouraged by the U.S. officials’ grasp of the industry’s difficulties. “The feeling that I got from them is that they recognize the magnitude of the problem and there’s an absolute determination to finding a solution,” he said. “At least, they’re engaged.”
Earlier, Fiat’s chief executive, Sergio Marchionne, said the task force was receptive to a proposed partnership that would give Fiat a 35 percent stake in Chrysler in exchange for new technology, but no cash.
“We can add value,” Marchione said. “That’s the real issue and it’s a necessary ingredient of the revival of Chrysler.”
Hurt by a steep decline in auto sales and past poor decisions, General Motors and Chrysler have requested an additional $21.6 billion to help them restructure. The government is trying to revamp the companies by March 31, but could call back the loans if the automakers fail to win concessions from stakeholders.
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