In two venues, Chrysler and Fiat Auto CEO Sergio Marchionne repeated his desire to have Fiat and Chrysler joined as a single company, through a flat buyout of the retiree health care trust fund (VEBA)’s stake in the company. Earlier he had said that there was a 50-50 chance of an IPO, which would let the VEBA use the markets to set a price on their shares (at the cost of substantial attorney and advisor fees), but that he would prefer an outright buyout. Even if there is an IPO, Fiat intends to buy as much of Chrysler as it can, making Chrysler stock a good bet for speculators.
Currently, the VEBA owns 41.5% of Chrysler, but it needs cash to meet its continuing obligations to retirees. Today, from Geneva, Marchionne said that he had been in discussions with a number of bank “CEOs and chairmen who want to help” to finance a buyout of the VEBA’s share.
Which path a deal will take is, according to Marchionne, not likely to be clear until the third quarter of this year.
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, [...]
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 [...]
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 [...]
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 [...]
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 [...]