Fiat Has Cash to Complete Chrysler Acquisition

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Thread: Fiat Has Cash to Complete Chrysler Acquisition

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    GMI Staff Member Premium Member nadepalma's Avatar
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    Fiat Has Cash to Complete Chrysler Acquisition

    Fiat Has Cash to Complete Chrysler Acquisition
    Marchionne tells shareholders he plans to skip IPO.

    by Paul A. Eisenstein on Apr.09, 2013

    Almost four years after it took effective control of the then-struggling Chrysler Group LLC, Italian automaker Fiat SpA says it has the cash in hand to complete the acquisition of its U.S. ally ó and hopes to complicate the deal in little more than a year.

    There had been some question about whether Fiat could complete the deal considering the financial drain it is facing in Europe, where the automotive market has fallen to its lowest level in a quarter century and most automakers are plunging deep into the red. It might be necessary, hinted Fiat/Chrysler CEO Sergio Marchionne, that the Italian side of the alliance sell off some assets to complete the takeover, however.

    Exactly what the remaining Chrysler stake will cost still depends upon resolution of a legal battle between the automaker and the United Auto Workers Unionís retiree health-care fund. Known as a VEBA, it is now the second-largest Chrysler shareholder, after Fiat. The two sides have reached an impasse over putting a value on the union holdings and a Delaware court is expected to now issue a ruling.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Quote Originally Posted by nadepalma View Post
    "and hopes to complicate the deal in little more than a year."
    I'd like to think it's complicated enough as it is....

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Lets hope Sergio just keeps his eye on the ball, avoids distractions and Chrysler can stay out of trouble and continue to do great things. Whatever they do with ownership will play out, but I'm hoping for a good outcome and great product to keep rolling out of Chrysler.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Of course Fiat will come up with the cash. They need to in order to get to Chrysler's cash, don't they?
    "The irony of the Information Age is that it has given new respectability to uninformed opinion" -- John Lawton

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    The only question I have is whether in fact Chrysler's success is the very reason Fiat is able to fund
    the purchase of Chrysler. The little company that refuses to die..

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Fiat is a huge, huge company. Chrysler is like one spec in a 5 gallon bucket of Fiat.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Quote Originally Posted by Bcooper View Post
    Fiat is a huge, huge company. Chrysler is like one spec in a 5 gallon bucket of Fiat.
    Um... no. Chrysler will be a huge chunk of Fiat.

    According to wikipedia:
    Fiat SpA revenue (2011): 59.559 billion Euros [roughly 78 billion $ at today's exchange rates]
    Chrysler revenue (2012): 65.78 billion $
    "The irony of the Information Age is that it has given new respectability to uninformed opinion" -- John Lawton

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Quote Originally Posted by Bcooper View Post
    Fiat is a huge, huge company. Chrysler is like one spec in a 5 gallon bucket of Fiat.
    ?!?!?!

    No.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Bcooper,.. Go fetch me a half gallon of checkerboard paint and 50 feet of skyline.
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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    They may have cash to complete the sale but they don't have cash to: 1) complete the sale; 2) invest in Dodge/Chrysler; 3) Invest in Europe (R&D radically scaled back); 4) continue to lose money hand over fist in Europe because they won't shed any of their 4-5 excess factories in Italy 5) hold or increase market share in Europe or NA. Right now they are holding on as a company by the threads of Jeep and the new Ram. There aren't many bullets after that for a long while. Better hope that fugly Cherokee finds a niche!

    I'm also guessing that Fiat will neglect Brazil/SA during this period as well.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Quote Originally Posted by EcoBustier69 View Post
    They may have cash to complete the sale but they don't have cash to: 1) complete the sale; 2) invest in Dodge/Chrysler; 3) Invest in Europe (R&D radically scaled back); 4) continue to lose money hand over fist in Europe because they won't shed any of their 4-5 excess factories in Italy 5) hold or increase market share in Europe or NA. Right now they are holding on as a company by the threads of Jeep and the new Ram. There aren't many bullets after that for a long while. Better hope that fugly Cherokee finds a niche!

    I'm also guessing that Fiat will neglect Brazil/SA during this period as well.

    One problem with your post. #2. are you crazy? The next Gen 300 will be on the 2014 Ghiblis Platform which will also happen to the Charger (totally updated LY platform). Next Gen 200 will on a New Midsize car Architecture with Lanica, New "Barracuda" could Possibly be on a Alfa Platform (DRWD) shared with a possible 6C Coupe/Guila sedan/Wagon even maybe Avenger. also with #3. they would not need as much to invest in Europe since The 200 will be a Lancia model to and the exspansion of Maserati in the Small Fullsize market. not to mention the shift of new Fiat models. this could help NA Markets as well.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Quote Originally Posted by EcoBustier69 View Post
    They may have cash to complete the sale but they don't have cash to: 1) complete the sale; 2) invest in Dodge/Chrysler; 3) Invest in Europe (R&D radically scaled back); 4) continue to lose money hand over fist in Europe because they won't shed any of their 4-5 excess factories in Italy 5) hold or increase market share in Europe or NA. Right now they are holding on as a company by the threads of Jeep and the new Ram. There aren't many bullets after that for a long while. Better hope that fugly Cherokee finds a niche!
    I'm also guessing that Fiat will neglect Brazil/SA during this period as well.
    As mentioned in an earlier post FIAT needs to complete the Chrysler takeover to access Chrysler's cash. The child will rescue the parent.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    FIAT isn't so small as people believe...
    Fiat Auto is one thing, but FIAT Group is a totally different thing ;-)
    Since 2008 the LENR inventor ROSSI was working for US Navy
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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    Quote Originally Posted by web_captain View Post
    FIAT isn't so small as people believe...
    Fiat Auto is one thing, but FIAT Group is a totally different thing ;-)
    "Fiat Auto" is "Fiat Group" isn't Fiat Industrial. There was a demerger a couple years ago.

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    Re: Fiat Has Cash to Complete Chrysler Acquisition

    The power house that was Fiat Auto in 2011 crashed and burned badly last year in Europe's economic meltdown.
    with worsening forecast in Europe, the only thing keeping them going is profits from Chrysler, Dodge and Ram..

    Chrysler was purchased with no cash down...that should tell you something.
    Last edited by jpd80; 04-12-2013 at 01:46 AM.

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