fiat

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Remember "DaimlerChrysler"? Well, that didn't go so well.

Maybe "Fiat Chrysler Automobiles" will fare much better.

The company that owns Chrysler Group LLC, Fiat SpA, announced the name change today: 

Today, the Board of Directors of Fiat S.p.A. (“Fiat”) approved a corporate reorganization and the formation of Fiat Chrysler Automobiles (“FCA”) as a fully-integrated global automaker...

In order to establish a true peer to the major global automotive groups, in both scale and capital market appeal, the Board has decided to establish Fiat Chrysler Automobiles N.V., organized in the Netherlands, as the parent company of the Group. FCA’s common shares will be listed in New York and Milan.

The newly formed company's stock will be traded on the New York Stock Exchange. Current Fiat shareholders will receive one share of FCA for each Fiat share they're holding.

The newly named company released its new logo as well today. A logo they say "lends itself to an extraordinary range of symbolic interpretations."

CEO of Fiat and Chrysler Sergio Marchionne called the corporate reorganization "one of the most important days in my career at Fiat and Chrysler."

media.chrysler.com / media.chrysler.com

MILAN (AP) - The Italian carmaker Fiat says its acquisition of the final Chrysler stake is complete, making the U.S. car company a wholly-owned subsidiary of Fiat.

Fiat SpA said Tuesday that it closed the deal announced Jan. 1 with the cash payment of $1.75 billion to a union-controlled trust fund. That's on top of an initial $1.9-billion payment, which was arranged through a special distribution from Chrysler. Fiat also made the first installment on an additional $700 million payment.

(photo by Steve Carmody/Michigan Radio)

Fiat began the new year with a pretty big announcement: It will soon have full ownership of Chrysler.

The Italian automaker owns 59% of Chrysler, and will buy the 41% stake owned by the VEBA -- a trust set up to pay for union retiree health care -- by January 20.

The company will pay $3.65 billion. The company will also pay the VEBA an additional $700 million, split into four equal payments, made over the next four years.

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FLORENCE, Italy (AP) — Italian automaker Fiat says it won't launch an initial public offering for Chrysler before the end of this year.

Fiat said Monday it is "not practicable" for Chrysler in 2013, and said it was working to launch the IPO in the first quarter of 2014. It did not elaborate on the reasons, but said the decision was made after consulting underwriters.

Chrysler and Fiat CEO Sergio Marchionne said last month that Fiat was "bent on executing the IPO" and that he hoped it would be done by the end of the year.

Fiat owns a controlling stake in Chrysler, but has been stymied in its efforts to buy out the minority shareholder in a disagreement over price. An IPO is an alternative way to monetize the stake.

Chrysler made a lower-than-expected profit of $166 million in the first quarter, a decline of 65 percent from last year.  It was not just analysts whose expectations weren't met; the CEO of the company admitted disappointment.  

Sergio Marchionne said he knew the company would be "limping" in the period, due to retooling of the Toledo plant and preparations to launch the new Cherokee, but "we just didn't know how much."

Having a Maserati built in Detroit was seen as a symbolic win for the comeback of manufacturing in Michigan. But now it turns out that won't be happening.

Italian automaker Fiat, already Chrysler's majority owner, has announced plans to acquire another stake in the Detroit car company.

Fiat currently owns 58.57 percent of Chrysler.  The rest is held by VEBA - the Voluntary Employee Beneficiary Association.  The VEBA was given stock in Chrysler in lieu of cash payments to cover union retiree health care costs, which were shifted to the UAW in 2007.

Fiat says it intends to exercise an option for 3.3% of VEBA's stock, for $198 million.

Chrysler's third-quarter profits up 80 percent

Oct 29, 2012

A third-quarter earnings report from Chrysler shows that profits are up 80 percent from last year.

The automaker earned $381 million over the past quarter, up from $212 million for the same period last year.

Brent Snavely from the Detroit Free Press has more:

Jeep has signed a three-year, $45 million marketing deal with an Italian professional football club. 

The agreement could help the brand make inroads in Europe, where SUVs are uncommon.

The Jeep logo will soon appear on the backs of the jerseys worn by the Italian soccer team Juventus.  The team will also get Jeeps for club use. 

Michigan Radio sports commentator John U. Bacon says it’s an aggressive marketing ploy that will almost certainly boost Jeep’s brand awareness in Europe.

Steve Carmody / Michigan Radio

Governor Snyder’s focus will be on automotive and alternative energy companies on his first official business trip to Europe.

Transportation equipment and chemicals account for more than half of Michigan’s $6 billion in annual exports to Europe.

The governor will start out in Turin, Italy, meeting with executives at Fiat and other companies. Fiat is the parent company of Chrysler.

Mark Brush / Michigan Radio

GENEVA (AP) - Fiat and Chrysler CEO Sergio Marchionne says he may shift the date of the Dodge Dart's production launch off of April 1 to "to avoid being jinxed" by an April Fool's Day launch.

The Dodge Dart is the first Chrysler model to use Fiat architecture under the nearly three-year-old alliance.

Marchionne on Tuesday called the Dodge Dart "a huge step forward in terms of moving the brand into the American heartland."

Fiat, which controls a 58.8 percent share of Chrysler, sells the city car 500 in the United States, hitting sales of 2 million last year.

It plans to bring over the 500L - a larger version of the 500 that was launched at the Geneva Motor Show on Tuesday - in 2013.

Chrysler is on the mend.  

The Detroit automaker made money last year for the first time since 2005.

The profit -- $183 million -- was modest.  But it would have been much larger, were it not for the company's decision to pay off its federal loans years early.  The payoff resulted in a $500 million charge.

Chrysler also reported strong sales for January of this year, up 44 percent from the same month last year, driven largely by demand for the company’s passenger cars.  

The company expects 2012 to be up to eight times more profitable than 2011.

AP Photo

Chrysler CEO Sergio Marchionne is striking an upbeat note about the US auto industry—and Detroit—at this year’s Detroit Auto Show.

Detroit’s smallest automaker posted the biggest gains in 2011, with sales soaring 26 percent.

In fact, Chrysler is now doing better than Fiat, the Italian automaker that helped rescue Chrysler from the brink of collapse in 2009.

Chrysler

Fiat's ownership stake in Chrysler goes up 5 percent now that the company is building a car that gets 40 mpg in the U.S.

The added stake was part of the agreement with the U.S. government when it bailed out the auto company in the 2009 bankruptcy restructuring.

The Associated Press has more:

The U.S. government...gave Fiat a 20 percent stake in Chrysler in July of 2009 in exchange for Fiat's management expertise and use of its technology. Fiat gradually raised its ownership by meeting performance goals and buying the government's stake in Chrysler.

Chrysler said early Thursday that a pre-production version of the new Dodge Dart compact got 40 mpg in testing by the Environmental Protection Agency in late December. Full testing for the mileage sticker that will go on the Dart's window has not been finished. The window sticker testing is done under different standards and could be lower than 40 mpg.

The AP reports that the added 5 percent comes from a UAW trust fund that pays for retiree health care. After giving up the five percent, that fund still owns 41.5 percent of Chrysler.

Automobile Magazine has more on the Dart, which will be built Belvidere, Illinois:

Engine choices will comprise two “Tigershark” inline-fours displacing 2.0 and 2.4 liters, as well as a turbocharged 1.4-liter MultiAir inline-four. Chrysler has also said there will be a choice of three transmissions for the compact Dart sedan. The Dart is based on a lengthened and widened version of the platform that underpins Europe’s Alfa Romeo Giulietta hatchback.

The Dart will be revealed at the North American International Auto Show starting next week. We'll have more then.

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While Chrysler is finally making money in the United States this year, financial uncertainty in Italy is hitting car sales there hard.   

Inventories are swelling, and incentives are rising.

Fiat lost $285 million in the third quarter of this year, and the overall economic situation doesn't bode well for the company's fourth quarter.

Meanwhile, Chrysler made a modified operating profit of $483 million in the third quarter.

Michael Robinet is with IHS Automotive. He said the merger of the two companies is working the way it should. 

Fiat USA

MILAN (AP) - The ratings agency Moody's has downgraded the credit rating Fiat SpA citing financial risks tied to the integration with Chrysler Group LLC.

Moody's on Wednesday downgraded the Italian automaker to Ba2 from Ba1.

The ratings agency said it expects integration of the two automakers will mean they will have "to support each other in the event of financial difficulty."

Fiat took an initial 20 percent stake in Chrysler in exchange for engine technology and management prowess. It currently holds a 53.5 percent share.

Moody's said it made the downgrade even though Fiat does not guarantee Chrysler's debt, and that the two companies' finances remain separate.

A top Chrysler executive says Fiat and Chrysler have made good progress at merging their two cultures. 

The Italian car company was put in charge of the Detroit car company two years ago. 

This is Chrysler’s third attempt after failed mergers with German car company Daimler and an investment group, Cerberus Capital. 

Chrysler’s head of World Class Manufacturing Massimo Risi says it helps the companies have a lot in common, especially the ability to survive.

Ricardo Giaviti / Flickr

WASHINGTON (AP) - The Treasury Department says it has ended its investment in Chrysler LLC after Italian automaker Fiat SpA purchased the U.S. government's remaining holdings in the auto company.

Fiat paid $560 million to the Treasury Department for the government's 98,000 shares. Fiat has run the company since it emerged from bankruptcy protection in June 2009.

Treasury provided a total of $12.5 billion to Chrysler and its financing arm after the recession hampered auto sales and sent Chrysler and General Motors to the brink of collapse. The funds came from the government's $700 billion bank bailout fund.

Since then, $11.2 billion of the assistance has been repaid, Treasury says. Chrysler repaid $5.1 billion in loans from the government in May. Treasury said it likely won't recover the remaining $1.3 billion.

Rosh Sillars / Flickr

The CEO of Fiat and Chrysler, Sergio Marchionne, says he is not in talks to buy the Chrysler stake held by a trust for retired autoworkers.

Marchionne told reporters on the sidelines of a new Fiat car launch Tuesday that the "easiest route" for the trust to convert its stake into cash is when Chrysler goes public. He said that the IPO would not be this year because "the market is not there."

Fiat raised its stake in Chrysler to 52 percent with a deal earlier this month to buy the U.S. Treasury's 6 percent interest in Chrysler for $500 million. Fiat hopes to raise its stake to 57 percent by the end of the year. Marchionne says he is in talks to buy the Canadian government's remaining stake.

(photo by Bridget Bodnar/Michigan Radio)

President Obama congratulated a crowd of Chrysler auto workers today in Toledo for their hard work as he stood surrounded by an assembly line of Jeeps. He stressed the importance of the 2008 bailout of Chrysler and G-M to the rest of the auto industry, including Ford:

Fiat says it will buy the U.S. Treasury’s 6% stake in Chrysler.   

The announcement means Chrysler will be free of government influence long before General Motors will be. 

Fiat and the U.S. Treasury will negotiate the price over the next ten business days.   Fiat will own 52% of Chrysler once the deal goes through.     

Sheldon Stone is a restructuring expert with Amherst Partners.  He says the negotiations should go smoothly, since the federal government is highly motivated to get out of the car business.

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Updated: 

News that Fiat will soon acquire a bigger stake in Chrysler is another sign the merger is working.

Jim Hall is president of  the auto consulting firm 2953 Analytics.  He says the merger benefits both companies.  Fiat gets access to the U.S. market and to Chrysler’s more profitable vehicles, and Chrysler gets access to Fiat's global markets and its fuel-saving technology. 

And the merger could save the companies money on parts.

Fiat USA

During the U.S. government led bailout in 2009, Fiat took over management control of Chrysler and was given a 20% stake in the company.

The government said Fiat's stake in Chrysler could increase to as much as 35% so long as they met three milestones.

Now, the Italian company now controls 30% of Chrysler after meeting the second milestone set forth by the U.S. government.

From the Detroit News:

Fiat SpA announced today it has increased its share in partner Chrysler Group LLC to 30 percent effective immediately.

The additional 5 percent stake is triggered automatically with Fiat's completion of the second of three performance-related conditions.

The first, achieved in January, was awarded for Chrysler's assembly in Dundee of a fuel-efficient Fiat engine.

The second condition was that the Italian automaker help Chrysler generate cumulative revenue of $1.5 billion outside North America and use Fiat's dealer network in Latin America to distribute Chrysler vehicles.

The third milestone, according to the Globe and Mail, is the development of a 40 mpg Dodge car built on a Fiat platform.

Once that milestone is reached, Fiat could solidify its ownership of Chrysler. From the Globe and Mail:

Dodge is developing a compact car on a Fiat platform that will reach 40 miles per gallon, which would satisfy the third test set by Treasury in 2009.

Mr. Marchionne told analysts on a conference call in October that he expected Fiat would meet all of the Treasury’s hurdles by the end of 2011.

The indications of progress are significant because the sooner Fiat can raise its Chrysler stake to 35 per cent, the quicker it could exercise an option to take majority ownership of the U.S. automaker.

The Detroit News reports that the current ownership of Chrysler breaks down this way:

  1. 59.2% - United Auto Workers retiree health care trust
  2. 30% - Fiat
  3. 8.6% - U.S. government
  4. 2.2% - Canada and Ontario governments combined

Fiat could increase its ownership stake in Chrysler this week. 

Eventually, Fiat hopes to own a majority of the Detroit automaker. 

In 2009, the federal government agreed to give Fiat 20% of Chrysler in return for taking over management of the Detroit automaker.  The deal also set up incremental steps by which Fiat could reach 51%.    

Fiat CEO Sergio Marchionne says he expects Fiat’s stake to grow to 30% this week, after meeting a requirement to increase sales of Chrysler vehicles outside North America.  

(photo by Steve Carmody/Michigan Radio)

Fiat CEO Sergio Marchionne says the Italian auto maker will increase its stake in Chrysler in the coming days.  Fiat currently controls about 25% of the Detroit auto company.  The Wall Street Journal reports Marchionne plans to add another 5%. 

(photo by Steve Carmody/Michigan Radio)

Fiat/Chrysler CEO Sergio Marchionne talked about an improving revenue picture ahead of a Fiat stockholders meeting today in Turin, Italy. He also says Fiat may soon increase its stake in Chrysler from 25% to 35% this year.   Fiat took over management of Chrysler 21 months ago, as the Detroit automaker emerged from bankruptcy protection.

Agenzia Giornalistica Italia reports that Marchionne told investors  that he is confident Fiat's 2011 goals will be met:

He explained, moreover, that in 2011, profits will amount to 37 billion(with the possibility of reaching more than 100 billion after 2014, due to the Chrysler integration effect), whereas the management outcome will range from 0.9 and 1.2 billion. Dividends policy will be confirmed (25% of net profits will go into dividends).

The Wall Street Journal quotes Marchionne as saying Fiat will increase this year its share of the European auto marker, where it saw a decline in 2010. 

"We expect a general improvement in trading conditions, with the exception of the passenger-car market in Europe, which will be negatively influenced by declines forecast for Italy and France...Nevertheless, we project that our market share will increase as a result of new model releases programmed for the second half".

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Chrysler made the case for its self-proclaimed "resurrection" at the North American International Auto Show.

The company put on an optimistic show as it debuted 16 new Chrysler products. The automaker had only a bare-bones presence at the auto-show last year.

Sergio Marchionne is Chrysler's CEO. He said the display shows the company is once again a viable competitor in the North American car market: