Hoovey689

iTrader: (16)

Fiat seeking $10B in financing to buy Chrysler

As Fiat looks to become the full owner of Chrysler, all it has standing in its way is the retiree trust of the United Auto Workers, which currently holds the remaining 41.5 percent of the company as the result of the Pentastar's bankruptcy deal. The Detroit News is reporting that that Fiat is currently talking to numerous banks in an attempt to raise around $10 billion to fund the purchase of Chrysler's remaining stake with enough left over to refinance the debt of both companies. We've known that Fiat has been working to obtain the capital to buy out Chrysler for some time now, but this is the first time we've seen Fiat tip its hand about how much cash it thinks it will need to close the deal.

The first order of business is a legal dispute over the value of the UAW's stake in Chrysler, which the report indicates could cost Fiat around $3.5 billion. The acquisition of remaining shares could happen by this summer, but it sounds like CEO Sergio Marchionne (above) might not be ready for a full merger until next year.

http://www.autoblog.com/2013/05/30/f...-buy-chrysler/

I8ABMR

Jeez.....Chrysler is worth 10 billion ????

Hoovey689

iTrader: (16)

Chrysler is already saving Fiat

spwolf

56% of World sales for Fiat group comes from... Chrysler.

Literally, Fiat would have been dead if not for Chrysler as their market dropped in Italy in past 2 years by half...

Of course, in 2009, Chrysler was on brink of death too...

Sulu

The remaining 41.5% of Chrysler is only worth about $3.5 billion. The remaining $6.5 billion would be used to pay off a lot of different creditors. It is easier (and may be cheaper) to have only one person to owe money to, rather than many, many people.

That brings to mind this old saying: "Two wrongs make a right"! GM was probably right to bail out of Fiat a few years ago.

Hoovey689

iTrader: (16)

Absolutely. I just love the irony. Glad they are on their feet still, some new Pentastar products are pretty neat and I've always been enamored by Alfa's and Ferrari's

mmarshall

This may (?) one of several reasons why Chrysler (as with GM) is turning out vehicles which are so much better now than several years ago. The workers themselves, through the UAW, now own a part of the company, and have more of an incentive to take pride in what they build. We've all heard horror-stories in the past of Chrysler workers drinking on the job, smoking pot, goofing off, calling in sick (slick)........you name it. (and, yes, it showed in some of their products). But that stuff apparantly isn't tolerated any more.

spwolf

of course...

FIAT needs to badly update some of their products. Everything except for Panda and 500 is very old... cars like Bravo and Punto are currently on 10yr cycle. Alfa has 2 "newish" models and they cancelled 159.

It is mircale that they sell so much as they do... and it was all due to few markets really.

Complete Fiat/Chrysler group gets most of their sales from:
USA
Canada
Italy
Brasil

it is pretty terrible.

Hoovey689

iTrader: (16)

I miss the 159

Outrage

Those guys are back on the job: http://www.foxnews.com/politics/2012...ob-reinstated/

Whitigir

Now how do i get hired in this job ? Seriously!

Hoovey689

iTrader: (16)

Fiat ups Chrysler stake by 3.3%, inches closer to full control

Fiat is one step closer to completing a merger with Chrysler after exercising an option to acquire an additional 3.3 percent of the Auburn Hills-based automaker today. Automotive News reports that Fiat now controls 68.49-percent of Chrysler, which is up almost 10 percent since we last heard news of this deal back in February when Fiat talking to various banks to raise more capital in order to complete the acquisition.

The article says that Fiat is still able to increase its stake in Chrysler up to 75 percent over the next 12 months, but it sounds like CEO Sergio Marchinonne would rather purchase the remaining shares from VEBA – the retiree benefits trust – sooner rather than later. Unfortunately, the two sides still seem far from an agreement on a fair price for the rest of Chrysler, as Fiat has them valued at $4.2 billion compared to the $10.3 billion estimate from the unions that currently own the remaining stake in Chrysler.

http://www.autoblog.com/2013/07/08/f...-full-control/

mmarshall

I'm not sure that I buy that idea (no pun intended). I'm all for the Fiat/Chrysler relationship to succeed (so far, it has given us some excellent new Chrysler products).

But that trust contains what many employes worked long and hard for.....and are entitled to in the future. To sell it off carelessly just so more shares can be purchased by the parent company, IMO, is not necessarily a wise idea. The union had better look at this and proceed very carefully.