Fiat, Contradicting Chrysler, Says It Won’t Take Debt

Fiat SpA said it won’t assume any Chrysler LLC debt as part of an agreement to acquire a 35 percent stake in the third-biggest U.S. automaker, contradicting a statement by Chrysler’s chief.

Fiat “intends to make it absolutely clear that the proposed alliance will not entail the assumption of any current or future indebtedness of Chrysler,” the Turin, Italy-based company said today in a statement.

The Italian manufacturer would assume responsibility for Chrysler’s debt equal to its equity stake, Chrysler Chief Executive Officer Robert Nardelli said in a CNBC interview March 17. Fiat plans to trade its small-car technology for a stake in the Auburn Hills, Michigan-based company, which is being propped up by U.S. aid. Fiat has said it won’t make any cash payment and isn’t committed to future funding.

Read Full Article from Bloomberg

- Posted: 2009-03-20 09:01:38

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