So Long Chrysler, Hello Fiat (Obama-Induced Merger)

Shortly after yesterdays big announcements, Chrysler and Fiat announced that they had come to a tentative deal regarding their merger. US President Obamas administration has statedthat the merger is anecessary condition for further bailout money to be granted to them.

Does this make it a done deal? Not so fast. Follow the jump for more.

Experts are predicting that the new 30-day deadline thatthe Obama administration has given to Chrysler might actually be intended for them to prepare to file bankruptcy. From there, Fiat could cherry-pick the resources it needs. From a business standpoint, this makes sense - Fiat will, of course, be gaining facilities and unparalleled access to a dealer network across North America through which it can market and sell its line. But why would Fiat want to take on a Chryslers debt load? They dont. Fiat is actually going to great lengths to make it clear that there will be no cash or debt exchanged between the two companies in a merger.

Whether this particular scenario is actually the feasible or not remains to be seen. One thing is for certain, though - Fiat is definitely coming our way, one way or another.  

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