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Fiat Will Take Over Chrysler, But Stay In Italy
Fiat wants to complete the acquisition, which will help it grow in the U.S where it has poor to zero direct presence. According to reports the remaining part of the shares will cost Fiat about $3.5 billion, which it is currently trying to raise. This amount, however, could increase, based on government ruling.
The takeover process, reports say, could begin by the end of summer. The strategy would be to buy Chrysler's debt and combine it with Fiat's, which as a whole would be repaid at a lower rate of interest.
Fiat's take over plan has given rise to a rumor that Fiat would shift base to the U.S in search of better pastures. This in turn raised concerns in Italy about job cuts, which would be particularly harsh coming at a time when the country is battling a falling economy.
Reuters now reports that Fiat boss Sergio Marchionne has assured Italian minister Flavio Zanonato that the company has no plans to shift its headquarters to the U.S and will not cut jobs. The automaker has promised to stay put in its home country and play a part in resurrecting its economy.
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