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.
Some time ago, Sergio Marchionne, head of Fiat Chrysler, said that the only way to reboot Alfa Romeo would be by amortizing engineering costs with Dodge. That’s gone down the memory hole, now. It had to. The Alfisti will have fitsies if they overtly share with Chrysler. The D-RWD platform is now Giorgio, an Italian name for something developed largely in Auburn [...]
We may have the first clear 2017 Chrysler Town & Country minivan spy shots, adding to a small “phone pic” shot posted some time ago. The vehicle, parked with the Chrysler Technical Center in sight, has camouflage and padding, but you can clearly see the openings for the side and front door handles. The photo gives some idea of the relatively length [...]
The Ram 1500 faced down the aluminum-bodied Ford F-150 and new Chevrolet Silverado in Motor Trend’s half-ton truck shootout. The three contenders were put through a broad array of testing, including a 260-mile drive through California and Arizona. Measurements included: Testing without load: 0-60 mph and 1/4-mile acceleration, 60-0 mph braking, and maximum lateral grip (Ram was Limits-handling without load: closed-course cornering, braking, [...]
FCA CEO Sergio Marchionne has long expressed his desire to slash the number of Fiat and Chrysler platforms, emulating Volkswagen’s “back to the future” move of putting just about everything onto a single platform. Mr. Marchionne has allowed major exceptions; the combination of an over-ambitious plan and a grip on reality delayed the Jeep Renegade and some other cars, because the [...]
This year’s winners of the prestigious Ward’s Top Ten were (in alphabetical order) the BMW 5-series electric motor, the Corvette Stingray’s 6.2 liter V8, the Dodge Challenger SRT Hellcat V8, the Ford Fiesta three-cylinder, one-liter turbo, Hyundai Tuscon fuel cell vehicle, Mini Cooper 1.5 turbo three cylinder, the Ram 3-liter VM diesel, Subaru WRX four-cylinder turbo, VW Golf 1.8 liter [...]