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.
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).
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.
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.
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.