Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Why does the media keep saying Fiat bought out Chrysler?

When a "purchase" is made one party generally transfers money (or some other asset) to another party. As far as I can tell though, Fiat paid nothing for the good assets of Chrysler. The only thing anyone ever says is that Fiat is contributing the technology to make small cars to Chrysler. But since they own the company, that's like taking money out of one pocket and putting it into my other pocket. These companies are no longer separate entities, and Fiat is transferring these technologies not to "Old Chrysler", or to any of the stakeholders of "Old Chrysler" (ie Cerberus, the Federal Government, bondholders), but rather to "New Chrysler", which is a subsidiary of Fiat. So from my reckoning, that's not an actual transfer of assets outside of the company, and thus not a sale. So my question is, did Fiat actually pay anything for Chrysler? If not, why is it called a sale, and not a gift from the Federal Government?

2 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    "Turned over to Fiat" would be more appropriate.

    Frankly, since the bondholders got shafted, I'll never by a Chrysler product.

  • Ewok
    Lv 5
    1 decade ago

    I know 20% is not majority owner, I guess they are idiots

Still have questions? Get your answers by asking now.