Fiat To Merge With Chrysler When VEBA Case Solved

by Bertel Schmitt

May 30th, 2013 9:28 AM

fiat to merge with chrysler when veba case solved

Fiat can’t wait for a full merger with now again cash-rich and profitable Chrysler, but it will wait until its legal dispute with the UAW’s VEBA healthcare trust has been resolved. “We intend to wait for the Delaware verdict before moving forward on the merger” with Chrysler, Fiat Chairman John Elkann told Reuters.

“The verdict is due 90 days from the April 25 hearing,” Elkann told Reuters. Elkann did not rule out an out of court settlement with VEBA ahead of the verdict, which will help determine the price of the 41.5 percent stake in Chrysler held by the trust.

Elkann said Fiat was not planning to spin off luxury sportscar maker Ferrari to finance the takeover. He did not mention Alfa. Elkann said the new company’s name would include both Fiat and Chrysler (FiatChrysler anyone?), and that Sergio Marchionne will stay on past 2015 to run the combined group.

#BertelSchmitt #Chrysler #Fiat #VEBA

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6 comments

Morbo on May 30, 2013

At least this European knows how to share (properly). Not sure how much of the 300 was Daimler besides the suspension and transmission, but that's about the only DaimlerChrysler product that actually worked (in terms of function and profit). Third time's the charm i guess, after Renault and Daimler's dances with the (American) devil (Chrysler).

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Bumpy ii on May 30, 2013

Renault? Chrysler picked up the remnants of their tie-up with AMC (some of which eventually made its way into the 300), but I don't think the two ever played pattycake themselves.

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- Ranwhenparked on May 30, 2013
  
  That's right. Renault was a minority (eventually plurality) shareholder in American Motors from 1979-1987 and the dominant player in that ill-fated alliance (the plans were originally to phase out the AMC brand name entirely and use Renault on all passenger cars and keep Jeep on the light trucks). Renault sold their 49% stake to Chrysler and quit the US market, and Chrysler then bought out all of AMC's remaining shares and absorbed the company. Interestingly, the corporate structure actually remained intact for a time. After the takeover, American Motors was renamed "Jeep Eagle Corporation" and continued to exist on paper as a wholly-owned subsidiary of Chrysler Corp., until the Daimler takeover a decade later.
  
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Omnifan on May 30, 2013

This time, the name should be ChryslerFiat. Not like the last time when it was DaimlerChrysler. Sergio also needs to change his name to Steve.

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- Ranwhenparked on May 30, 2013
  
  Or maybe Agnelli Chrysler Company? Sort of put a personal face on it
  
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Lorenzo on May 31, 2013

Maybe Chrysler/boat-anchor? Fiat (the Industrial conglomerate) should have sold off the Fiat auto group brands piecemeal, and retired the Fiat auto nameplate, instead of licensing the name the way Saab did. Any auto company needs a strong home base, Italy can't support a home car industry any more than Spain, England or France. The Eurozone could, but it's dominated by the Germans.

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