What’s Good for Chrysler is Good for Fiat

Fiat watercraft in Miami

It’s no secret that Fiat owns a big chunk of Chrysler. Yes, for those of you hiding in your closets during every episode of Budget Talks, Obamacare, and Debt Ceiling, wondering if the end of the world is near, the Italians own one of Detroit’s finest. The big debate over the last few years is between Fiat and the United Auto Workers Trust that still owns 41.5% of Chrysler. The UAW Trust wants to maximize the amount they get paid for selling it’s share to Fiat. This way, they can pay benefits to retired Chrysler employees. Fiat, on the other hand, wants to pay as little as possible, with the idea to own all of Chrysler, so they can take advantage of economies of scale to reduce costs and increase shareholder value. You can see the dilemma.