Chrysler, Dodge, and Jeep news from Allpar

VEBA demands Chrysler share registration – first step to IPO?

Chrysler says it has received a “registration demand” from the United Auto Workers union Retiree Medical Benefits Trust (usually called the “VEBA”) under the terms of the June 2009 Shareholders Agreement. The demand requests the registration with the Securities and Exchange Commission of 270,769.6 Class A Membership Interests now owned by the VEBA. The shares represent about 16.6% of Chrysler Group’s outstanding equity interests.

Demand registration rights allow an investor to require a company to register shares of common stock with the SEC in order to for the investor to sell them on the market. In this case, Chrysler most likely will have to undertake, and fund, an initial public offering which can be expensive (GM’s IPO cost $118 million and it was widely held that GM got a bargain).

Fiat had hoped to be able to buy out the VEBA stake, but the Italian company recently admitted that the collapse of the European vehicle market and the need for investment in production left the company short on cash. Even with an IPO, Fiat will hold a controlling interest in Chrysler.

In a statement, Chrysler Group said it will comply with its obligations.



New fours coming

Recently, Ralph Gilles commented that a new family of four-cylinder engines was coming to Chrysler in around eighteen months— just in time…

Chrysler plant cut energy use, got $1mm

Belvidere Assembly

Nicor Gas gave Chrysler’s Belvidere Assembly Plant in Illinois a rebate check for $1.3 million, the result of savings from three projects…

Dodge and Mötley Crüe kick off “Chance to be Bad”

Dodge-MotleyCrue

Dodge is kicking off the “Dodge Chance to Be Bad Giveaway” to tie in with its sponsorship of rock band Mötley Crüe’s…

V6: direct injection, turbos?

According to Allpar sources, Chrysler has resumed work on its original plans for the Pentastar V6 engine series: direct injection and forced…

Categories: Chrysler.


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New fours coming
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Chrysler plant cut energy use, got $1mm


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