Business - Written Tuesday, January 20, 2009 by Dan Herman - 2 Comments
Amongst the things making news today (other than the obvious) is the hook-up between Italian carmaker Fiat, and struggling, if not near-dead, American icon, Chrysler. The deal, if approved, would give the Italian auto maker a 35 per cent stake in Chrysler. Given that some believe that Chrysler has a book value near zero, one might question how much that stake is actually worth.
But the actual deal between the two is less about cash then it is about technology exchange and access to their respective dealerships. Fiat, for example, is keen to bring its line of compact cars to the US, and is willing to trade access to its successful small-car platforms and fuel-efficient technologies to do so. Seems like a high price to pay for real estate, non?
Which brings us to the magic of US car dealerships: Continue…