fiat

U.S. Treasury to sell Chrysler stock
4:49 pm
Fri May 27, 2011

Chrysler to be free of government ownership before General Motors

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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Auto/Economy
9:33 am
Thu April 21, 2011

Fiat moving closer to a majority stake in Chrysler

Chrysler Headquarters in Auburn Hills, Michigan.
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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.

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Auto/Economy
11:17 am
Tue April 12, 2011

Fiat meets another benchmark - increases stake in Chrysler to 30%

You can buy the Fiat 500 in the U.S. More access to the U.S. market was one reason Fiat took over Chrysler.
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
Auto/Economy
6:44 pm
Mon April 11, 2011

Fiat to acquire another stake in Chrysler this week

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.  

Auto/Economy
2:21 pm
Mon April 11, 2011

Fiat looks to increasing stake in Chrysler

Fiat CEO Sergio Marchionne talks to reporters at January's North American Intl Auto Show in Detroit
(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%. 

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Auto/Economy
8:56 am
Wed March 30, 2011

Fiat/Chrysler CEO predicts "$100 billion" revenues by 2014

Fiat/Chrysler CEO Sergio Marchionne speaking at the North American International Auto Show in Detroit in January 2011
(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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Auto/Economy
11:32 am
Mon January 10, 2011

Chrysler proclaims a "resurrection"

CEO Sergio Marchionne says Chrysler is back.
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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:

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