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...Fiat is hardly a magic pill for Chrysler, which is burdened by inefficient factories that need major overhauls to allow for production of smaller, smarter automobiles, says Giuseppe Berta, a Milan-based car-industry expert. "At this point, Chrysler can say it tried to get out of a corner, that it found a European company that makes more marketable cars," says Berta. "But if you want to actually use Chrysler facilities to construct a Cinquecento or Alfa MiTo, you're talking about a major cost." (See the 50 worst cars of all time...

Author: /time Magazine | Title: Fiat to Take 35% Stake in Chrysler | 1/20/2009 | See Source »

Fiat, which began a remarkable turnaround with the whopping cash payout from GM in 2005, is also struggling again, along with the rest of the auto industry, as car sales plummet amid a deepening economic crisis. Fiat has been itching to get its stylishly economic models on the market in the U.S., and the deal with Chrysler can be seen as part of a series of "strategic partnerships" it has sealed with other automakers in recent years, including one with Tata motors and a deal to build diesel engines with Daimler-Chrysler, before the breakup last year of that German...

Author: /time Magazine | Title: Fiat to Take 35% Stake in Chrysler | 1/20/2009 | See Source »

...start," noting that much will depend on how the U.S. auto bailout proceeds under the new Obama Administration. "This is still far from a done deal," says the official. "We've already said that with the current situation in world markets, there needs to be major consolidation in the car business, and as we've shown today, we'd like to be part of that." Still, despite its more recent success, the Italian company's share price is near an all-time low, and Tuesday's deal may have been an attempt, above all, by Fiat to strut for investors...

Author: /time Magazine | Title: Fiat to Take 35% Stake in Chrysler | 1/20/2009 | See Source »

...debating the relative merits of competing inaugural balls, one hosted by Democrats Abroad, another by the U.S. embassy. Tickets for both are sold out, and for those who are neither Democrats nor American, viewing parties have been planned across the capital. Afghans with access to satellite television are charging car batteries to ensure that not one minute of the inaugural festivities will be lost to the city's chronic power outages. Not even Saturday's suicide car bombing in the capital, which killed four Afghans and one American, has dimmed hopes that Barack Obama's campaign slogan, "Change...

Author: /time Magazine | Title: Obama's Daunting Task in Afghanistan | 1/19/2009 | See Source »

...time to the vehicle parked across the street. My cousin drove frantically. We didn't know where we were going, but we had to move out of the area. Then we began to hear the bombs fall behind us. We kept moving forward. The car shook left and right, perhaps from the explosions, perhaps from speeding. I didn't know. All I could think about was my home. (See photos of the violence in the Middle East...

Author: /time Magazine | Title: Surviving Gaza: What Was the Sacrifice For? | 1/19/2009 | See Source »

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