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.
Dodge is showing four concept cars at SEMA: a Dart, Charger, Challenger, and Viper ACR. You can now see them all at Allpar, courtesy of Patrick Rall — now with the story behind them. Coming soon: Jeep, Ram, Chrysler, and Fiat concepts. See all the Dodge concepts
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 [...]
Long before the Challenger Hellcat was officially launched, Allpar noted that the engine — which we estimated at “620-680 horsepower” (depending on when the stories were written) — was being tested in the Jeep Grand Cherokee. Then we wrote that it had probably been ruled out, for various reasons. Today, one source wrote that the trademarked Trackhawk name, which we had thought [...]