[455Grandville]

http://www.nydailynews.com/autos/fia...icle-1.1564224

Italian carmaker Fiat SpA struck a $4.35 billion deal to gain full control of Chrysler Group LLC, ending more than a year of tense talks that have obstructed Chief Executive Sergio Marchionne's efforts to combine the two automakers' resources.
The agreement, announced on Wednesday, cements Marchionne's reputation as the industry's consummate dealmaker about a decade after he took the helm of Fiat as a car business newcomer, analysts and bankers said.
But it remains to be seen whether a merger will be enough to cut Fiat's losses in Europe. Marchionne's plan to shore up Fiat depends on the ability to share technology, cash and dealer networks with Chrysler, the No. 3 U.S. automaker.
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"This is an increasingly American company now, because in Europe, and especially in Italy, the business conditions remain difficult," said Andrea Giuricin, transport analyst at Milan's Bicocca University. "Fiat has already lost many of its market positions in Europe and it won't be easy to recover that."
Fiat will acquire the 41.46 percent stake in Chrysler it did not already own from a retiree healthcare trust affiliated with the United Auto Workers union. The trust, known as a voluntary employee beneficiary association or VEBA, will receive $3.65 billion in cash for the stake, $1.9 billion of which will come from Chrysler and $1.75 billion from Fiat. After the deal closes, Chrysler has committed to giving the UAW trust another $700 million over three years.
The deal is expected to close on or before Jan 20. Fiat said that because of how the deal is structured it will not need to make any capital increase through a rights issue.
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The VEBA's payout is less rich than some analysts expected. The sale of the UAW trust's stake values the No. 3 U.S. automaker at less than $9 billion. When factoring in the additional $700 million, Chrysler is worth $10.5 billion.
"We thought they were going to have to pay a lot more than that," a London-based analyst at a major investment bank said. "The market's going to love this - Marchionne's done it again. He's brought in a deal that looks like a cracking one on the face of it and he doesn't need to do a capital increase."
'DEFINING MOMENT'
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Marchionne, who has run both automakers since Chrysler's 2009 U.S. government-funded bankruptcy restructuring, aims to merge Fiat and Chrysler into the world's seventh-largest auto group.
But he has been at odds over the U.S. automaker's worth with the trust, which was pushing for a payout of more than $5 billion. In September, the trust exercised an option enshrined in bankruptcy documents to force Chrysler to file for an initial public offering.
Wednesday's deal will allow Chrysler to avoid an IPO.
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In a statement, Marchionne called the buyout a defining moment for the two companies.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker," he said.
The Chrysler buyout talks have been closely watched by debt and equity investors as Fiat's long-term plan to cut losses in Europe depends on its ability to deepen ties with Chrysler.
Chrysler is now a profit center for Fiat, but the two companies currently are forced to manage their finances separately. A full merger will make it easier - but not automatic - to combine the cash pools of the two companies, giving Fiat more funds to expand its product lineup.
The UAW trust was created in 2007 as a way for General Motors Co, Ford Motor Co and Chrysler to offload their obligations to pay retiree healthcare benefits.
Medical benefits for GM, Ford and Chrysler retirees are handled in separate accounts and each account was initially to be funded with cash. But during the 2009 financial crisis, the VEBA agreed to accept stakes in GM and Chrysler in lieu of cash.

[72projectbird]

As long as the Challenger doesn't disappear, then Im fine.

[GT182]

Originally Posted by 72projectbird

As long as the Challenger doesn't disappear, then Im fine.

Nawwww. They'll just give it an Italian name you won't be able to pronounce. Or renamed to... Pizano Americana Fasticus. LOL

[zephyrracer]

And Fiat bought Chrysler's remaining stock with Chrysler's money, Damn funny and corrupt, will never buy a new GM or Chrysler product again!!!

Gregg

[MikeNoun]

We had a Chrysler dealership that was built in the 1980's, was active until a few years ago, then closed and abandoned. Yesterday, there was a crew there putting up a giant Fiat sign in front. Of course, Fiat doesn't call them dealerships, they're "studios".

I have to admit, Fiat has the best spokesmodels.

[arbys]

I'm thinking that they bought Chrysler for the dealer network and the Jeep brand and they'll trash everything else eventually after they milk it to death.

[salem1912]

Originally Posted by MikeNoun

We had a Chrysler dealership that was built in the 1980's, was active until a few years ago, then closed and abandoned. Yesterday, there was a crew there putting up a giant Fiat sign in front. Of course, Fiat doesn't call them dealerships, they're "studios".

I have to admit, Fiat has the best spokesmodels.

This ad wasn't too shabby 40 some years ago. Kinda looks like the same gal.

[goatwgn]

Originally Posted by zephyrracer

And Fiat bought Chrysler's remaining stock with Chrysler's money, Damn funny and corrupt, will never buy a new GM or Chrysler product again!!!

Gregg

At one time a few years ago I beleive, Fix It Again Tony was entering into some kind of deal with GM (and in another one of GM's screw ups as of late) , they backed out of it, right before the economy went belly up, and ended up having to pay out a large some of money to Fiat. By the way, those commercials they had with the little "500's" going into the water in Italy and arriving on the shores here should have had them going into the water in Mexico and coming here instead.

[johnta1]

And just who doesn't like to make money ?

The first whining/complaining I saw in this thread was you regarding Capitalism. Nobody else.

Highly unlikely you would have all those nice race cars in a Communist or Socialist

country. But, keep complaining on the countries basis that has a good enough

system in which you can have such things -

Your main Topic heading?

Not a good thing : Fiat closes on $4.35 billion deal for full ownership of Chrysler

If that's not capitalistic, I don't know what is.
Then your cartoon doesn't make sense, probably from Fox News?

John I suspect that many feel that Fiat isn't buying Chrysler because they think they can improve it and make it a top performer. They are buying it more like a hostile takeover, raiding the goodies and discarding the rest after running it into the ground.

Why hell yes, they are going to rape the company.
They don't buy it to be good people.

They want to get every last bit of cents out of it and now.

Label it how you wish, but it's a shame we cannot recapture what we did in the past. But, with Wal Mart and crap like that being so big, it's doubtful. Typical American thinking : short term quick gains, forget about long term effects.

How do you think we got in this position?
Big corporations trying to make the most money, screw the workers or American people.
If it is cheaper to make their product some where else they do.

Highly unlikely you would have all those nice race cars in a Communist or Socialist

country. But, keep complaining on the countries basis that has a good enough

system in which you can have such things -

And you're the first to rail against unions and other things that benefit the american workers.



When they allow the big corporations to run the country, it's not us small folks that benefit.

As for Walmart, what products do they sell?
Whatever Americans will buy.

[arbys]

Already halfway down the crapper. Get ready for a royal flush!

[LeighP]

Fiat wouldn't be loosing Euro market share if they built a better car.....

[zephyrracer]

I hope we are not beating up on Capitalism? Not perfect but the best deal around.

Gregg

[KO]

just passing ownership throughout europe, Renault, Daimler, Fiat. Fiat also owns Ferrari and Alfa Romeo

[Transporter]

Yugo's? 30,000 miles, that's a laugh, I used to haul them, when you went to the rail yard to pick them up they would give a list of serial numbers and a bucket of keys, you had to keep on trying to find another one that would run until your trailer was full.

Then when you went to unload only half of those started!

[arbys]

Originally Posted by Transporter

Yugo's? 30,000 miles, that's a laugh, I used to haul them, when you went to the rail yard to pick them up they would give a list of serial numbers and a bucket of keys, you had to keep on trying to find another one that would run until your trailer was full.

Then when you went to unload only half of those started!

That was for illustration purposes only. In actuality you're probably right. Not many cars have problems in the first 30K.

[77 TRASHCAN]

Yugo, short for You-go-screw-yourself...

[blue67gtoragtop]

Coming from a family that only bought GM, I strayed and bought from all 3 major "domestic" brands. I have a 2003 Ram 1500 with 150,000 miles that has been a great truck...would definitely buy another one. I also have a 2009 Challenger R/T 6spd that has had no trouble. My daughter has a 2012 Fiat 500c that she loves and my wife drives a 3006 Mustang GT...all which have been great....now for collector/play cars, I'll stick to my 67 GTO, 69 Caprice coupe, and 87 Monte Carlo SS...

[arbys]

Originally Posted by blue67gtoragtop

I have a 2003 Ram 1500 with 150,000 miles that has been a great truck...would definitely buy another one. .

Those are the kind of figures that you can boast about.

[moto-d]

All IMHO, of course

[Sirrotica]

In 2013 the village I live in bought a new police cruise (4dr charger), I noticed that it was MIA lately and the town cops were driving a new Tahoe, and they've resurrected the old Crown Vic that was their spare car (it's got a ton of miles on it and about 4 years old now). My stepsons both are volunteer fireman and of course they talk to the cops frequently. On Christmas day the subject came up and I asked them where the new charger went. "They had so much trouble with it they sold it" one of the stepsons said, nuff said for me..................

Chrysler has always been at the low end for durable units and higher cost more per mile in repairs than the other 2 players, so it doesn't surprise me that they still have problems. I'll probably get a bunch of crap for that comment, however being in the garage business most of my life the only brand worse than chrysler was AMC. Renault bought the car part of AMC and chrysler bought the Jeep portion. Chrysler products made the majority of my paycheck for over 4 decades and when I worked for myself they were the bulk of the repairs and service calls.

One other thing is chryslers never held any trade in value and if you wanted to trade one off they didn't give you diddly on another brand for trade. So if you went back to the chrysler dealer they were the only ones that would give you anything on a trade, so unless you wanted to take a beating on a trade in you were going back to the chrysler dealer.