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.
Keeping a years-long tradition, Chrysler today released a number of “teaser images” for concepts to be revealed at the SEMA aftermarket show in Las Vegas, Nevada. Each brand is covered, though Chrysler has but one car — the 200S. That can be explained by the status of the brand’s three cars: the 2015 300 has yet to be launched, and the [...]
Months after unconfirmed reports made it to Allpar’s pages, the power of Automotive News, in the person of reporter Larry Vellequette, pried a key fact from Chrysler executives — that they cast and build “Ferrari” engines for Maserati. As our sister site pentastars.com reported, the engines are actually cast in Kokomo, and machined in the Trenton Engine plant, using a mixture of [...]
Allpar’s informal sources have agreed that there are plans for a new Dodge Viper ACR, debuting for the 2016 model year, possibly replacing the current TA (Time Attack) model. Artist suzq044 provided the following rendering, which uses SRT’s trademark black wheels and a Dodge concept-car semi-rendering. The Viper ACR may have a mild power boost, but will be mainly a suspension and/or airflow upgrade, to increase track [...]
Dodge has released pricing for the full Charger lineup, starting with the V6/eight-speed Dodge Charger SE at $28,990 (all prices include $995 destination for the “49 states”). Charger was thoroughly renovated for the 2015 model year, with a new look, suspension and electronics revisions, a standard eight-speed automatic for ever engine, and other upgrades. The top Charger, the SRT Hellcat, has [...]
The 2017 Jeep Wrangler may leave its historic steel body-on-frame construction and Toledo plant behind, according to Chrysler CEO Sergio Marchionne, as quoted by Automotive News’ Larry Vellequette. The current Wrangler has good mileage for rugged four wheel drive vehicles, but poor economy overall, at around 17/21 mpg (depending on model and transmission). Mr. Marchionne said the Wrangler will need to lose weight [...]