fiat

Auto
11:20 am
Wed January 29, 2014

Fiat and Chrysler reorganize under a new name

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

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Auto
12:19 pm
Tue January 21, 2014

Chrysler becomes subsidiary of Fiat

2014 Fiat 500 Abarth
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.

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Auto
6:45 pm
Wed January 1, 2014

Fiat to own 100% of Chrysler by January 20

Sergio Marchionne, CEO of Fiat and Chrysler
(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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Auto
9:26 am
Mon November 25, 2013

Fiat says no Chrysler IPO in 2013

Fiat and Chrysler CEO Sergio Marchionne
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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.

Auto
3:29 pm
Mon April 29, 2013

Chrysler profits are down, but Fiat losses are lower

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."

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10:19 am
Tue February 19, 2013

Maserati not coming to Detroit

Lead in text: 
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.
Fiat SpA will not build a Maserati in Detroit after all. The Maserati Levante, which shares a common architecture with the new 2014 Jeep Grand Cherokee, was supposed to have been built at Chrysler Group LLC's Jefferson North Assembly Plant starting later this year. The decision had been heralded by Gov.
Auto
3:09 pm
Thu January 3, 2013

Fiat seeks to gain another stake in Chrysler from VEBA

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.

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Auto
4:59 pm
Mon October 29, 2012

Chrysler's third-quarter profits up 80 percent

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:

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Auto/Economy
5:50 pm
Sun April 8, 2012

Jeep signs major deal with Italian soccer team

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.

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Auto/Economy
8:29 pm
Sat March 17, 2012

Michigan's governor flies to Europe in hopes of boosting trade

Michigan Governor Rick Snyder.
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.

Auto/Economy
3:08 pm
Tue March 6, 2012

Fiat may shift Dodge Dart launch off April Fool's

The 2013 Dodge Dart was officially unveiled at this year's North American International Auto Show in Detroit
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.

Auto/Economy
11:45 am
Wed February 1, 2012

Chrysler makes a profit but Fiat breaks even in 2011

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.

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Auto/Economy
4:33 pm
Mon January 9, 2012

CEO Marchionne "delighted" with Chrysler's performance, but big tests still ahead

Sergio Marchionne
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.

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Auto/Economy
10:54 am
Thu January 5, 2012

Chrysler's new Dodge Dart gives Fiat another 5 percent in Chrysler

PR photo of the 2013 Dodge Dart
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.

Auto/Economy
2:02 pm
Sun November 13, 2011

Once rescued by Fiat, Chrysler is now rescuer of Fiat

Fiat and Chrysler CEO Sergio Marchionne
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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. 

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Auto/Economy
10:24 am
Wed September 21, 2011

Moody's downgrades Fiat's credit rating

Fiat's credit was downgraded by Moody's.
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.

Auto
4:02 pm
Mon August 1, 2011

Chrysler and Fiat cultures are merging well

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.

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Auto/Economy
3:20 pm
Thu July 21, 2011

U.S. government ends Chrysler investment; Fiat takes over

The U.S. government is no longer invested in Chrysler.
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.

Auto/Economy
4:03 pm
Tue June 14, 2011

Marchionne reluctant to buy autoworkers' stake

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.

Auto/Economy
2:17 pm
Fri June 3, 2011

Pres. Obama marks the end of government ownership of Chrysler

Pres. Barack Obama addresses auto workers at a Chrysler assembly plant in Toledo, Ohio
(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:

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