Over to you President Obama. The only way Fiat helps bail out Chrysler is if the U.S. taxpayer puts in $3 billion:
Chrysler LLC has found an international partner in Fiat SpA but the auto maker isn’t out of the woods, mainly because the deal is contingent on Chrysler getting $3 billion in additional government loans, said people familiar with the pact.
On Tuesday, Chrysler and Italy’s Fiat confirmed they had reached an agreement on an alliance that would give Fiat a 35% stake in the American company. Fiat would not put any cash into Chrysler but would provide technology and vehicles that Chrysler could build and sell in the U.S.
And in other auto-related news, one of the complaints about the U.S. auto industry is that no Big Three executives have lost their jobs in response to the way they’ve run their respective companies. Not so with Toyota:
TOKYO — Toyota Motor Corp. named a member of its founding family as its new president Tuesday and he is expected to make swift changes, including a possible shakeup of Toyota’s management ranks.
Toyota faces its biggest crisis in decades as its sales drop across the globe. Akio Toyoda, grandson of the company’s founder, believes the company’s managers have become too conservative and bureaucratic, according to people familiar with the situation.
Mr. Toyoda offered few details of what he will do. But he said the auto industry faced a once-in-a-century crisis, and promised to lead Toyota’s comeback by putting customers first.
“I will go back to the basics of the foundation of the company,” said Mr. Toyoda. “I intend to exercise as much boldness as possible in pushing ahead with the reforms.”