Fiat and Chrysler

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FIAT AND CHRYSLER….Today’s news reports say that Fiat is planning to establish a “partnership” with Chrysler:

Under terms of a pact that is being hammered out, Fiat is likely to take a 35% stake in Chrysler by the middle of this year. It would have the option of increasing that to as much as 55%, these people said.

Fiat wouldn’t immediately put cash into Chrysler, but would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S., these people said. Fiat would also provide engine and transmission technology to help Chrysler introduce new, fuel-efficient small cars, they said.

My first thought when I read this was, how did Chrysler manage to find someone dumb enough to want a stake in their company? But then I read a little more closely. Fiat isn’t actually buying anything. Chrysler is apparently going to fork over a 35% stake to them in return for Fiat taking over one of its factories. It’s true that that 35% stake is probably worth nothing, but unless I’m reading this wrong, Fiat is basically getting the use of a Chrysler plant for free. I guess that’s not a bad deal for them.

And for Chrysler? Beats me. It’s hard to believe they’re really all that desperate for Fiat’s engine and transmission technology, but maybe it’s worth it to them just to save themselves the cost of shuttering a plant. Or something. But in any case, nobody would be dumb enough to actually invest in Chrysler, would they?

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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