Could Tata Nano cars make their way to the US in the wake of the Fiat-Chrysler merger?
Washington, 21 April 2009: The Obama administration will make about $500 million available to Chrysler LLC through the end of this month as it seeks to reach an alliance with Fiat, and up to $5 billion through May to help General Motors Corporation restructure outside of bankruptcy, an independent oversight report on the Treasury Department’s corporate rescue fund said today. Separately, the United Auto Workers (UAW) union urged its members to lobby the White House by phone or email to ensure that workers and retirees are treated fairly in negotiations at both companies on new concessions, which are considered vital for the automakers’ to survive. “We need President Obama and his auto task force to stand up for the interests of workers and retirees in these restructuring negotiations,” the union said in an appeal on its Web site to members. The UAW represents about 26,000 workers at Chrysler and 62,000 at GM. The union is under pressure along with bondholders and banks to help Chrysler
It’s no secret Tata Motors, India’s largest domestic automaker, wants to introduce its low-buck Nano city car in the United States. After all, a small matter like a global recession suddenly makes marketing the car, billed as “the world’s cheapest,” about as easy as selling snow cones in the Sahara. So how does a company hope to re-engineer a car within two years for a market where it has absolutely no sales presence? Luckily for Tata, the answer to these problems could be solved with a call to Fiat-Chrysler. Despite continued legal battles over the deal, a healthy Fiat-Chrysler union could pave the way for the Nano’s coming to the United States. Fiat and Tata already share many joint ventures. Tata sells Fiats in India and has access to the Italian company’s diesel engines. The two companies share a giant factory in India, and Tata has developed a pickup truck that Fiat will sell under its own name. Sources:
