Fiat tipped to buy Chrysler

by Alex Brownsell, marketingmagazine.co.uk 20-Jan-09, 14:45

LONDON - Italian carmaker Fiat is reported to be in talks to buy a stake in troubled US car brand Chrysler. It is understood to be discussing the purchase of a 35% stake, with the option to buy a majority stake in Chrysler at a later stage.

A strategic alliance between the brands would help Fiat improve its relatively weak presence in the US market, while Chrysler has suffered in the US due to rising sales of small cars.

Any deal is said to be likely to mirror the existing partnership between Renault and Nissan, which last year pooled its joint £650m European media planning and buying account into OMD.

Last month Chrysler, along with Ford and General Motors, received a $4bn emergency loan from the US Treasury's Troubled Asset Relief Programme to help it through the economic downturn.