Fiat says it sits on a 22.7 billion euro cash pile. CONSOB, the Italian equivalent of the SEC, told Fiat to explain “size and purpose” of its cash position, says Il Messagero in Rome. Fiat says it is not aware of an alleged probe, and that any suggestion that its cash pile was lower than reported in its statements was false, and will be dealt with.
“Any suggestion that Fiat may not have the liquidity stated in its financial statements is false and will be treated as such by Fiat,” Fiat told Reuters. However, the way we read it, Fiat is not accused of overstating its cash. Instead, it is blamed for not spending the money.
On September 24, Fiat CEO Sergio Marchionne said in a speech that he is ”exasperated” by CONSOB’s “19 letters” between April 2010 and October 2011 that asked for more information about Fiat’s plans to invest in Italy. According to the Economic Times, “Fiat has 12.1 billion euros in cash and equivalents, and Chrysler, in which Fiat has a 58 percent stake, has 10.6 billion euros, it said on July 30. Fiat cannot access Chrysler’s cash because of agreements with Chrysler’s creditors.”