Chrysler formed a deal with Italian auto maker Fiat less than an hour after President Obama spoke this morning, saying the American company couldn’t survive on its own. A federal assessment of Chrysler called for the company to merge with Fiat within 30 days before the White House considered another $6 billion loan.
Rep. Russ Carnahan,
D-St. Louis, said the partnership with Fiat would help Chrysler by
supplying more fuel efficient engines and could help the Fenton plant
as well.
The federal
assessment released today listed one of Chrysler’s weaknesses as a lack
of flexible manufacturing. This may be one strength the Fenton plant
has. It was retrofitted in 2007, allowing it to produce trucks,
minivans and cars with European specifications.
“There may be
some additional cutbacks in the work force and plant closings in this
process and we don’t know where those will be,” Carnahan said in an
interview. “But I think the Chrysler plant in Fenton — this is a
critical time for them to market the value that they will bring to
building a new generation of vehicles today.”
Half the Chrysler Fenton plant, located outside
Chrysler said in its restructuring plan last month that it will close two assembly plants and five engine plants by 2014. Experts said last month that Fenton was in danger of closing.