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CEO of Fiat Group Sergio Marchionne, said, "This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole. Bringing together Fiat's world-class technology, platforms and power-trains for small and medium sized cars, and its extensive distribution network in Latin America and Europe, with Chrysler's rich heritage, strong North American presence and talented and dedicated workforce will create a powerful new automotive company, while helping preserve jobs and a manufacturing industry that is critically important to the U.S. and Canadian economies."
"Our goal since we first entered discussions with Chrysler nearly a year ago was to leverage the strengths of both companies to yield the scale, efficiencies and cost savings necessary to create two stronger automakers able to compete more effectively on a global scale. This transaction is an important step towards achieving this objective.
"Over the coming weeks and months, I will be spending a great deal of time meeting with Chrysler employees and touring its facilities. While our agreement must necessarily go through the U.S. legal system for a few weeks, we will be preparing ourselves to reemerge quickly as a reliable and competitive automaker. I believe Chrysler can meet the challenges posed by today's difficult market conditions by tapping back into its innovative spirit, by focusing on quality as a cornerstone of its product offering, and by listening to its customers and delivering the cars they want. It is a model we have strictly adhered to in the past few years at Fiat, and one I believe we can adapt here to write the next chapter in Chrysler's legacy.
"The transaction which we have just finalised represents an historic moment for both Fiat and Italian industry. It is a significant step toward building a new and solid foundation for the future.
"Today is also a day of great satisfaction for all women and men at Fiat. The fact that Fiat's know-how has been appreciated at the most senior levels of the US and Canadian administration - to whom I express gratitude on behalf of our Group's entire management team - is a source of significant motivation for the work ahead of us.
"We are certain that a stronger and more international Fiat will emerge from this alliance, with an even greater capacity to compete in markets worldwide," the CEO of Fiat Group, Sergio Marchionne, said.
Fiat's contribution
Fiat will contribute key technology and other resources to Chrysler.
Fiat contributions will consist of the following: licenses enabling Chrysler to use all Fiat Group Automobiles car platforms (and subject to any restrictive agreement between Fiat and any third party) for the production of Chrysler vehicles in NAFTA; licenses enabling Chrysler to use certain of Fiat's other key technology, such as engine technology; the on-going provision of management services in order to enable Chrysler to benefit from Fiat's expertise in operational and industrial recovery; participation in Fiat's purchasing and procurement programs; distribution of Chrysler vehicles outside NAFTA, in particular by giving Chrysler access to Fiat's distribution network in countries in which Chrysler currently has a limited presence.
The alliance, a key element of Chrysler's Integration Plan, would strengthen Chrysler viability for the long term with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites.
The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimise fully their respective manufacturing footprint and global supplier base. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.
