Fiat to buy up rest of Chrysler

[kscarbel]

BBC / January 1, 2014

Italian carmaker Fiat has agreed to buy the remaining 41% of Chrysler it does not own in a move that will create the world's seventh-largest car company.

Fiat has owned a majority stake in Chrysler since 2009.

The agreement ends drawn-out negotiations with the current owners, Veba, the healthcare trust affiliated to the United Auto Workers' union.

Chrysler and Fiat will pay the trust an initial $3.65 billion.

Once the deal is signed off, Chrysler will pay Fiat another $700 million.

[kscarbel]

Fiat to Get Full Control of Chrysler

Wall Street Journal / January 1, 2014

Fiat SpA said it would get full control of Chrysler Group LLC in a $4.35 billion deal, ending a standoff that clouded the future of both companies.

The deal, which helps clear the way for consolidation of the two auto makers, values Chrysler at just over $10 billion, within the $9 billion to $12 billion valuation that banks underwriting a proposed initial public offering had been considering. In light of Wednesday's deal, the IPO will be called off, a person familiar with the plans said.

The deal should give CEO Sergio Marchionne, who is the chief executive of both companies, the freedom he needs to further consolidate the companies' engineering and manufacturing operations. But even a combined Fiat-Chrysler will face challenges in a global auto industry dominated by much larger and richer rivals, including Volkswagen, Toyota, General Motors and Ford.

Fiat said it would pay the United Auto Workers health-care trust $3.65 billion for its 41.5% stake in Chrysler. The union's trust received the stake as part of Chrysler's government-led bankruptcy in 2009.

The trust, officially known as the UAW Retiree Medical Benefits Trust, will receive payments in two forms: a payment from Chrysler of about $1.9 billion and a direct payment from Fiat of $1.75 billion.

The trust also will get $700 million from Chrysler to be paid out in four installments. In return, Fiat said the UAW agreed to support "the continued rollout of Fiat-Chrysler World Class Manufacturing programs" and for Chrysler's operations to be as efficient as its rivals.

The transaction is expected to close by January 20, Fiat said.

The deal puts an end to a more than year long dispute over the value of Chrysler's shares and is a win for Mr. Marchionne. Without an agreement, he would have been forced into holding a Chrysler IPO.

Early last year, the trust demanded that Chrysler register its shares for an offering, a right it received as part of an agreement that helped the U.S. auto maker emerge from bankruptcy in 2009.

Mr. Marchionne repeatedly has said he wants to own Chrysler outright and had hoped to avoid an IPO by purchasing the trust's shares directly in a private deal.

An IPO would have further delayed his plans to merge the companies into a single, global auto maker. An IPO also would have forced the Italian company to rethink its alliance with its U.S. partner, the company had said.

Analysts have viewed the trust's demand for an IPO as a way to determine a value for its Chrysler shares.

Chrysler in September filed paperwork seeking approval for the stock sale. But the sale, which had been planned for December, was delayed.

Fiat said the company and the trust have agreed to dismiss a lawsuit in a Delaware court that was to determine the value of the shares that Fiat wanted to buy from the trust using call options. Those shares now will be acquired by Fiat as part of the broader deal.

"The unified ownership structure will now allow us to fully execute our vision of creating a global auto maker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Mr. Marchionne said in a written statement.

[mack mhe9]

Just like Mack the years that made them the legends they are, are long gone. Now we just get the name.

[41chevy]

And the American public who bankrolled the bail out in 2009 get zippo . . . again!

[bullhusk]

And the American public who bankrolled the bail out in 2009 get zippo . . . again!

And the unions got there's. also how about the stock holders and all of the mom an pop dealers that backers the GOP?? Remember what the Obama boys did to those poor people? It just makes me F-in sick!!

BULLHUSK

PS ......and he got re elected

[farmer52]

And the unions got there's. also how about the stock holders and all of the mom an pop dealers that backers the GOP?? Remember what the Obama boys did to those poor people? It just makes me F-in sick!!

BULLHUSK

PS ......and he got re elected

I said this before and I will say this again.....you do not have a right to vote if you are on welfare, in prison, or illegal citizen. How do you think Obummer got elected and reelected? As long as these people vote and the politicians offer handouts, scum will be elected (Republican, Democrat, or other).

[james j neiweem]

Between Japan, Europe, Korea and India they own about 75 % of the car market and China is just getting started. Way to be asleep at the switch America.

[41chevy]

I said this before and I will say this again.....you do not have a right to vote if you are on welfare, in prison, or illegal citizen. How do you think Obummer got elected and reelected? As long as these people vote and the politicians offer handouts, scum will be elected (Republican, Democrat, or other).

Wait til the White House uses all the registered ACA Obamma Care data to have the people to vote for him. . . whether they want to or not!

[Red Horse]

Fiat to Get Full Control of Chrysler

Wall Street Journal / January 1, 2014

Fiat SpA said it would get full control of Chrysler Group LLC in a $4.35 billion deal, ending a standoff that clouded the future of both companies.

The deal, which helps clear the way for consolidation of the two auto makers, values Chrysler at just over $10 billion, within the $9 billion to $12 billion valuation that banks underwriting a proposed initial public offering had been considering. In light of Wednesday's deal, the IPO will be called off, a person familiar with the plans said.

The deal should give CEO Sergio Marchionne, who is the chief executive of both companies, the freedom he needs to further consolidate the companies' engineering and manufacturing operations. But even a combined Fiat-Chrysler will face challenges in a global auto industry dominated by much larger and richer rivals, including Volkswagen, Toyota, General Motors and Ford.

Fiat said it would pay the United Auto Workers health-care trust $3.65 billion for its 41.5% stake in Chrysler. The union's trust received the stake as part of Chrysler's government-led bankruptcy in 2009.

The trust, officially known as the UAW Retiree Medical Benefits Trust, will receive payments in two forms: a payment from Chrysler of about $1.9 billion and a direct payment from Fiat of $1.75 billion.

The trust also will get $700 million from Chrysler to be paid out in four installments. In return, Fiat said the UAW agreed to support "the continued rollout of Fiat-Chrysler World Class Manufacturing programs" and for Chrysler's operations to be as efficient as its rivals.

The transaction is expected to close by January 20, Fiat said.

The deal puts an end to a more than year long dispute over the value of Chrysler's shares and is a win for Mr. Marchionne. Without an agreement, he would have been forced into holding a Chrysler IPO.

Early last year, the trust demanded that Chrysler register its shares for an offering, a right it received as part of an agreement that helped the U.S. auto maker emerge from bankruptcy in 2009.

Mr. Marchionne repeatedly has said he wants to own Chrysler outright and had hoped to avoid an IPO by purchasing the trust's shares directly in a private deal.

An IPO would have further delayed his plans to merge the companies into a single, global auto maker. An IPO also would have forced the Italian company to rethink its alliance with its U.S. partner, the company had said.

Analysts have viewed the trust's demand for an IPO as a way to determine a value for its Chrysler shares.

Chrysler in September filed paperwork seeking approval for the stock sale. But the sale, which had been planned for December, was delayed.

Fiat said the company and the trust have agreed to dismiss a lawsuit in a Delaware court that was to determine the value of the shares that Fiat wanted to buy from the trust using call options. Those shares now will be acquired by Fiat as part of the broader deal.

"The unified ownership structure will now allow us to fully execute our vision of creating a global auto maker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Mr. Marchionne said in a written statement.

KSC-Could you please clarify. Does FIAT still have any control/interest in CNH/Iveco? I know they made some sort of change in past year or so but not sure just what it is.

[bullhusk]

Fiat to Get Full Control of Chrysler

Wall Street Journal / January 1, 2014

Fiat SpA said it would get full control of Chrysler Group LLC in a $4.35 billion deal, ending a standoff that clouded the future of both companies.

The deal, which helps clear the way for consolidation of the two auto makers, values Chrysler at just over $10 billion, within the $9 billion to $12 billion valuation that banks underwriting a proposed initial public offering had been considering. In light of Wednesday's deal, the IPO will be called off, a person familiar with the plans said.

The deal should give CEO Sergio Marchionne, who is the chief executive of both companies, the freedom he needs to further consolidate the companies' engineering and manufacturing operations. But even a combined Fiat-Chrysler will face challenges in a global auto industry dominated by much larger and richer rivals, including Volkswagen, Toyota, General Motors and Ford.

Fiat said it would pay the United Auto Workers health-care trust $3.65 billion for its 41.5% stake in Chrysler. The union's trust received the stake as part of Chrysler's government-led bankruptcy in 2009.

The trust, officially known as the UAW Retiree Medical Benefits Trust, will receive payments in two forms: a payment from Chrysler of about $1.9 billion and a direct payment from Fiat of $1.75 billion.

The trust also will get $700 million from Chrysler to be paid out in four installments. In return, Fiat said the UAW agreed to support "the continued rollout of Fiat-Chrysler World Class Manufacturing programs" and for Chrysler's operations to be as efficient as its rivals.

The transaction is expected to close by January 20, Fiat said.

The deal puts an end to a more than year long dispute over the value of Chrysler's shares and is a win for Mr. Marchionne. Without an agreement, he would have been forced into holding a Chrysler IPO.

Early last year, the trust demanded that Chrysler register its shares for an offering, a right it received as part of an agreement that helped the U.S. auto maker emerge from bankruptcy in 2009.

Mr. Marchionne repeatedly has said he wants to own Chrysler outright and had hoped to avoid an IPO by purchasing the trust's shares directly in a private deal.

An IPO would have further delayed his plans to merge the companies into a single, global auto maker. An IPO also would have forced the Italian company to rethink its alliance with its U.S. partner, the company had said.

Analysts have viewed the trust's demand for an IPO as a way to determine a value for its Chrysler shares.

Chrysler in September filed paperwork seeking approval for the stock sale. But the sale, which had been planned for December, was delayed.

Fiat said the company and the trust have agreed to dismiss a lawsuit in a Delaware court that was to determine the value of the shares that Fiat wanted to buy from the trust using call options. Those shares now will be acquired by Fiat as part of the broader deal.

"The unified ownership structure will now allow us to fully execute our vision of creating a global auto maker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Mr. Marchionne said in a written statement.

KSC-Could you please clarify. Does FIAT still have any control/interest in CNH/Iveco? I know they made some sort of change in past year or so but not sure just what it is.

I forgot just how many Billions that Diamler Benz took from Chrysler after their purchase do you remember?? (It was from their research and development fund)