Chrysler Viability... Internal Letter...

[Charger Aficionado]

New alliances...   I just hope they don't make a Fiat inspired Ram!!!     


To
   Chrysler Employees and Contractors
cc
   
Subject
   A Message From Bob Nardelli


Dear Colleagues:

I've consistently promised that your leadership team would communicate fully and directly to you regarding important business issues. Today, I have some very important information to share with you regarding a positive new development for Chrysler; one that will significantly enhance the long-term viability of our great company. 

In our continuing commitment to build a profitable enterprise for the future, consistent with the viability plan we submitted to congress and with the written and oral testimony I made on behalf of Chrysler, we are announcing today that Cerberus, Chrysler LLC and Fiat S.p.A. have entered into a preliminary non-binding agreement to establish a global strategic alliance. Upon completion of a due diligence process and required approvals, the agreement is expected to be completed as early as April. You can read the external announcement on the Scoop.
       
This alliance provides significant strategic benefits that support our viability and long-term competitiveness, including product and platform sharing, global distribution, and operational and business efficiencies.  Fiat would also provide management services supporting Chrysler's submission of a viability plan to the U.S. Treasury as required.  Fiat has been very successful in executing its own restructuring over the past several years.

Under the agreement, Chrysler will have access to all Fiat group vehicle platforms, which would complement our current product portfolio with fuel-efficient, environmentally-friendly small cars and powertrain technology. The alliance would greatly increase the global reach for our three brands in markets outside of North America, and Fiat's distribution organization would provide Chrysler a strong partner to help build our brand's presence in important markets where we have little presence today. 

Fiat would benefit from product and technology sharing as well, with access to our vehicle platforms and our manufacturing capabilities in North America. In addition, Chrysler would assist Fiat to bring their brands to the U.S. market.

As a condition of the U.S. government loan agreement, all constituents will be asked to contribute to Chrysler's restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial.  This partnership would adhere to the conditions of the U.S. government loan, and help us provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace. The alliance would help sustain Chrysler's product development, manufacturing, and sales operations here in the U.S which further supports our viability plan, and preserves American jobs. Our partners at the UAW have announced their endorsement of the proposed alliance. 

Along with the rest of the leadership team, I am aware of your desire and need to learn as soon as possible how the alliance will affect you personally. The agreement is just the first step, and we intend to keep you informed of key developments on an ongoing basis.

You have brought great pride to the Company through your tireless efforts to make Chrysler successful. Please continue to approach the important work you do with the same passion and commitment today and throughout the weeks ahead as we work together with all our constituents to implement our viability plan, and pursue this exciting new alliance. 

Bob