More details of the Chrysler/Fiat deal emerge in court
6 May 2009

Chrysler's bankruptcy protection court proceedings have revealed more details of its deal with Fiat and how the company will run once it emerges from bankruptcy protection.

The C-EVO platform, on which the Alfa 149 is based, is reported to be the first being transferred to the US for production. The Fiat 500, Grande Punto and Panda and Alfa Mito and Milano have also been named as potential models to be put on sale. Speculation already suggests the Panda will be badged as a Jeep.

Fiat's 3.0-litre diesel V6 and 1.4-litre four-cylinder Multiair engine line also been identified for being built in the US, along with its dual-clutch automatic gearbox, which would replace the units Chrysler will no longer be receiving from Getrag.

According to the Detroit Free Press newspaper, the new CEO of Chrysler will also be required to work for a salary of no more than $500,000 a year and will not be eligible for any company shares.

This is because of new US Treasury Department regulations, which are designed to restrict earnings of officials of failed companies.

Chrysler is also reported to be trying to negotiate a deal in the courts whereby Fiat will be paid £35 million if the union between the companies falls though.

Chrysler argues that Fiat has put the equivalent amount of time and money into pursuing the partnership to allow Chrysler to continue operating.

It is not clear whether the courts will accept this, however.

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