Chrysler alliance sparks optimism

Fiat closed its acquisition of Chrysler’s strongest assets last week, a key step in the carmaker’s plan to create a global player…

Fiat closed its acquisition of Chrysler’s strongest assets last week, a key step in the carmaker’s plan to create a global player to ride out the downturn.

The deal revives the 84-yearold US car firm that had been down to its last dollars before government intervention in late 2008 and completes an Obama administration-directed reorganisation for Chrysler. Other parts of Chrysler will remain in bankruptcy to be sold or closed. Fiat chief executive Sergio Marchionne became chief executive of the new Chrysler Group LLC.

The US firm’s former CEO, Bob Nardelli, will return to Cerberus Capital, the former majority owner of Chrysler, as an adviser.

Chrysler's former vice chairman and president, Jim Press, has been named Marchionne's deputy chief executive, and Fiat's chief financial officer, Richard Palmer, has been named CFO of the new company.

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In amemo to employees, Marchionne voiced optimism about the new company's outlook.