January 21, 2009 | Posted by Vitaliy Katsenelson

Chrysler – Fiat Deal is Horrible for GM and Ford

Fiat’s and Chrysler’s new partnership is borderline good or, at a minimum, a non-event for Chrysler. It’s great for Fiat, but horrible for General Motors (GM) and Ford (F).

Chrysler gets access to Fiat’s technology and smaller cars. That’s good but Fiat doesn’t appear to be willing to throw a lot of cash into Chrysler’s direction. What’s great for Fiat is that it gets overnight access to Chrysler’s distribution. Fiat will be able to sell and service its Fiat and Alfa Romeo brands nationwide. This is also a positive to Chrysler dealers ( at least for the ones that are still around by the time this deal is consummated). But this is horrible news for GM and Ford. Horrible! Horrible! Horrible! The auto market in North America is already and will continue to shrink for a while as consumers drive an existing car for 6 or 7 years instead of 5. And that decision has gotten even easier in the last decade as overall car quality has improved. So now GM and Ford will need to split a shrinking market with a new competitor.

Short URL: http://ContrarianEdge.com/?p=782

Valiantlord

To me it’s a good news!!!! I’m a mopurist. So ay last Chrysler would be back in a small car market.Could obviously sell more minivans in Europe.
On the other hand I don’t understand why people keeps telling GM or Fords are more reliable than the Chrysler-Dodge product.I see as many mechanics il all dealership and they don’t just do P.D.I. Where I work we install aftermarket accessories and I can see all cars are all nicely built any brands compared.

If the Detroit car companies are building pick-ups isn’it because people buys them ?? No one is forced to buy a vehicule that uses more gas than an another one.

I simply hope that deal will go through.Like GM sells Suzuki as their lil cars,Dodge will have Fiat 500 !! Yessssssssssss.
Dan

Vitaliy,

I appreciate your commentary (which combines personal experience as well as objective facts) on the comparisons between the US and truly communist/socialist regimes. I, too, am descended from a region where real communism/socialism existed, exists.

I emailed your usa.net email address and wanted to make sure you received it. If not, I basically wrote to you, saying I’ve moved to your neck of the woods from the Northeast and come with a value-oriented background. I think you have my email address from this comment submission, so feel free to contact.

Thanks,

Dan
http://stopdtp/dtp ??????????

Ford is a good car

Chrysler – Fiat Deal is Horrible for GM and Ford

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