Monday, June 1, 2009

Today's Fly Or Die Commerce Report

According to the BBC, the American and Canadian governments have approved a deal that will allow Chrysler to turn over most of its assets to Italian car company, Fiat. The BBC states that, 'under the terms of the deal, Fiat will control 20% of Chrysler, while 68% will be owned by a union trust, [the American and Canadian] governments will share 12%."

Surprisingly, the BBC has also revealed that: "Fiat is not paying anything for its 20% stake, which will give it access to the US car market. It has the option to increase its shareholding in Chrysler in the future. In return, Chrysler will be able to take advantage of Fiat's expertise in making smaller, more fuel-efficient cars in its existing US factories."

Chrysler, which is currently in bankruptcy, will reportedly end its bankruptcy status in the near future. (Possibly as soon as some time this week.)

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