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Fiat boss in US for Chrysler talks

(China Daily)
Updated: 2009-04-21 08:02

Fiat's chief executive has returned to the United States for talks as pressure builds to seal a partnership deal with Chrysler before the end of the month, sources at the Italian car maker said.

CEO Sergio Marchionne is going to Detroit and Washington, where the government has given Fiat and Chrysler an April 30 deadline to get the US car maker's unions and bondholders to agree the deal, the sources said.

Marchionne will not go to Canada, where the Canadian Auto Workers union had invited him to take part in their talks with Chrysler, they said.

The union has proven to be more resistant to the deal's terms than its US counterparts. Marchionne has threatened to abandon the deal if they keep resisting.

Expectations of an imminent deal have given Fiat's shares a boost in recent sessions. At 0912 GMT, they were up 2.67 percent at 7.87 euros after trading nearly 7 percent higher.

"People are betting that an alliance will be very positive for (Fiat)," one dealer said. The DJ Stoxx auto index was down 3.13 percent.

The shares also got a lift from a report last Friday in Automotive News, an industry publication.

It said Fiat could also form an alliance with General Motors Corp's operations in Europe and Latin America. Fiat declined to comment on the report.

Reuters

(China Daily 04/21/2009 page17)