Much has been made over the one future product announcement in Chrysler’s IPO filing. Apparently, it will be a an SUV based off of the Small Wide platform. A bit of detective work can help us figure out what it will be.
After Fiat and Chrysler’s retired UAW workers’ health care benefits trust were unable to agree on a price for the Voluntary Employees Beneficiary Association‘s 41.5% share in the Auburn Hills automaker, at the trust’s request Chrysler has filed initial paperwork for a public stock offering to sell part of the VEBA’s stake, about 16% of overall Chrysler shares, the first time in over a decade that the public will be able to own shares in Chrysler, which formerly was wholly owned by Cerberus and before that Daimler. Fiat certainly would rather the IPO not take place now as it complicates Fiat and Chrysler CEO Sergio Marchionne’s plans for the Italian automaker to acquire full ownership of Chrysler. The benefits trust has the legal right to force Chrysler to make the stock offering so the VEBA can cash out on the shares it received in exchange for giving up financial claims against Chrysler during the company’s bankruptcy and bailout by governments in the United States and Canada.
Ownership of VM Motori, the Italian maker of the V6 diesel engines offered in the Jeep Grand Cherokee and Ram 1500, is currently split 50/50 between General Motors and Fiat.
On Friday, Sergio Marchionne, who heads Fiat and Chrysler, told reporters in Milan, Italy that he hasn’t gotten any closer to making a deal with the UAW’s retiree health care trust for Fiat to purchase the VEBA’s shares in Chrysler and take full ownership of the Auburn Hills automaker. The UAW health care trust owns 41.5% of Chrysler and the two parties have not been able to agree on a price. The trust is demanding $5 billion for its shares. Marchionne told the LaPresse news agency, concerning the UAW trust’s suggested price, “They should buy a lottery ticket.” (Read More…)
I have to admit, I’m a fan of the Fiat 500. Yes, I know it’s just a Fiat Panda with bubbly sheetmetal. Yes I know it’s a little peculiar. Yes I know it’s trying to ride on MINI success. It doesn’t matter, the wee Fiat makes me grin every time I drive one. Whether it’s the slow-as-dirt standard 500, the ludicrously loud Abarth, the almost-convertible 500c or the totally impractical 500e, the Cinquecento knows how to brighten my day. I was therefore excited when Fiat announced the 500′s success would spawn a four door stable-mate for 2014. Is the 500L 40% more smiles for 20% more cash?
Another day, another flip-flop on future product plans over at Casa di Marchionne. The latest news comes from Italian unions, who claim that the Maserati Levante will be built at the Mirafiori plant in Italy, rather than at Jeep’s plant in Detroit.
You may recall that the possibility of building Jeeps in China (something that actually started decades ago when the brand was owned by American Motors) became an issue in last year’s U.S. presidential election campaign. According to reports in Chinese media, the Fiat and Guangzhou Automobile groups have reached a tentative agreement to assemble Jeeps in the companies’ joint venture Changsha factory in central China. (Read More…)
Sergio Marchionne’s plans to merge Chrysler and Fiat have been delayed because Fiat failed to convince a Delaware Chancery Court judge to set the value of Chrysler stock owned by the UAW’s health care fund known as VEBA. Judge Donald Parsons rejected Fiat’s request to find that a call-option agreement covering at least 54,000 Chrysler shares valued the stock at slightly less than $140 million. That decision means that the dispute over the shares’ value will now proceed to trial. (Read More…)
For decades now, the Fiat 124 Sport Spider has been a regular sight in American self-service wrecking yards. The mid-engined Fiat X1/9, based on a healthy serving of Fiat 128 components, has been a bit less commonplace in such yards, but I still see them every now and then. We’ve seen this ’80 and this ’86 so far in this series, and today we’re adding a brightly colored ’78 to the collection. (Read More…)
The Fiat Group reported its profits for the second quarter of 2013 and they were better than expected, attributed to strong pickup truck sales at Chrysler’s Ram brand and spending cuts in Europe.
Chrysler CEO Sergio Marchionne may not be fond of changing up his outfits, but he certainly has no problem mixing up product plans. The latest news out of Auburn Hills suggests that Chrysler will be extending the lifespan of some key products for up to another 5 years.
Once the merger he plans for Fiat and Chrysler goes through, Sergio Marchionne says that Fiat-Chrysler could be registered as a corporation in the Netherlands, not Italy or the United States. Marchionne wants to have the combined company’s primary stock listing on the New York Stock Exchange and rules for corporate governance in the Netherlands are similar to those in the States.
All it took was one little article in CAR magazine for the auto blogosphere to light up with a million different re-purposed versions of the same report. And what a joyous bit of news it is; Alfa Romeo is going to be rear-drive only from now on.
We decided to run the piece because it comes from Georg Kacher, a respected journalist who is known for having his finger on the pulse of the industry. If he says Alfa is planning to move to rear drive platforms, they probably are. But the big problem is that they are planning it. Nobody said anything about actually doing it.