StaffAllpar HomeMore NewsCarsTrucksUpcomingRepairsTest drives

Fiat denied raising funds to buy Chrysler

by Bill Cawthon on

Two Italian newspapers have published rumors of Fiat Group shopping banks to raise money to purchase the remaining shares of Chrysler Group.

This morning in Turin, the company released the following statement:

“The Italian newspapers Il Messaggero and Il Mattino reported this morning about alleged Fiat’s ongoing talks with banks regarding a proposed share capital increase. Fiat states that there is no specific project in such respect and believes that there is no need for a capital increase.”

Industry analysts have been upset that Fiat is putting off the acquisition of the shares currently held by the United Auto Workers retiree healthcare trust in favor of investing in Italian production facilities. Concerns have also been raised about the amount of debt the company will be carrying.

Therefore, it would seem only prudent that Fiat Group would eschew the expenses involved with raising the necessary money to exercise its options to buy the balance of Chrysler, especially when the value currently is under litigation in a Delaware court.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.


Tornado following the Hurricane?
rff 2019 ram 1500
See the clear, sharp 2019 Ram video; no crosshairs?
2018 jeep compass gauges
Oops: Compass “bright dash” recall

More Mopar Car
and Truck News

Some popular Allpar pages





Dodge Demon

2018 Wrangler JL



Staff details/contactsTerms of ServiceInformation is presented to the best of our knowledge. Plans change and sometimes mistakes are made. Decisions or purchases made based on this site's verbiage or images are done at the reader's own risk. Also see the Allpar News archives, 1997-2008 • Copyright © 2008-2017, Allpar LLC. All rights reserved. • Mopar, Dodge, Jeep, Chrysler, HEMI, and certain other names are trademarks of Fiat Chrysler Automobiles.