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.
Today, Fiat Chrysler CEO Sergio Marchionne implied that the odds were against the Toledo plant keeping Jeep Wrangler production, despite a recent land purchase and the city’s long history with Jeep in general and CJ and Wrangler in particular. He did say that, if Wrangler was to find a new home, new product would be moved to the plant: … if the economic [...]
Burns Motors has posted two videos of a Dodge Challenger Hellcat doing the quarter mile in 10.48 seconds. These stand in contrast to a video elsewhere which shows a $105,000 Tesla owner jumping the red light at the track to beat a Hellcat owner who was unused to the car, and struggled for traction through the run. The 2015 Dodge Challenger SRT [...]
Rumors from Windsor suggested first that the current “RT” minivan body would continue for some years alongside the new “RU,” and then that it would be dropped as soon as the new designs came out — in Chrysler form only. Sergio Marchionne has thrown some fuel onto the speculative fire, commenting today in Detroit that: Where is Reid [Bigland]? If it [...]