• May 23rd 2010 at 9:32AM
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Everyone is watching General Motors CEO Ed Whitacre, Jr. to see what he'll be able to pull of this year with respect to his plans, including a possible IPO. Count Chrysler CEO Sergio Marchionne among the interested. While the Fiat 500's introduction will likely result in Fiat upping its Chrysler stake to 25 percent, when it comes to a Chrysler IPO, Marchionne is thinking 2011, and he wants GM to go first, according to Automotive News.

Marchionne feels there's enough investor interest for both GM and Chrylser IPOs, but said, "Let him go, he's been itching to go," in reference to Whitacre wanting a GM IPO as soon as this year. Chrysler has good reason to wait. It's arguably further behind than GM in its turnaround, and whereas GM has the Volt to make a potential shareholder splash in 2010, Chrysler's product fireworks won't really start booming until next year.

For now, Chrysler milestones are being reached ahead of schedule and things in Auburn Hills are going well enough to get Marchionne to say, "May is "turning out to be a good month." A Chrysler IPO is obviously desired, but based on Marchionne's latest statements, it remains in the distance.

[Source: Automotive News – sub req'd]

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    • 1 Second Ago
      • 5 Years Ago
      For those who are kicking themselves at missing out on buying Ford cheap... heres your second chance... tbh im not really sure who i would back more out of Chrysler and GM, GM have some pretty exciting products coming, but Fiat plans on using Chrysler as its american dealerships, and thats very exciting for them.

      Also, what happened to existing GM and Chrysler share owners? Did they lose their entire share equity?

      Either way, if they are selling ridiculously low (read $2 per share) ill be buying a few thousand GM.
        • 5 Years Ago
        Those shares are for Old Chrysler and Old GM, the parts that didn't exit bankruptcy with the new companies. Those stocks are worthless because their will be new stocks issued for the new Chrysler and GM organizations. Don't buy anything now trading as GM stock. The old GM bonds are different. Because of the bankruptcy restructuring and equity deal made, the old GM bond holders will receive some of the New GM stock.
      • 5 Years Ago
      IPO is Initial Public Offering.
      • 5 Years Ago
      Chrysler should definitely not IPO this year, and maybe not even next. They need many more new models, and while the fall intros will help, they are not enough given the missing models in the small car segments.

      GM may also want to wait, as the EU crisis will affect everything for the rest of this year.
        • 5 Years Ago
        Yes, but with the markets tanking thanks to the new problems from the Greek debt, GM issuing anytime in the near future would mean less of an uptick from the initial price. We want the markets rising, businesses stable, and GM offering its new product. So even though the fall will see some good product, the markets will not be recovered enough (if at all) for the IPO.
        • 5 Years Ago
        The IPO (as mentioned above) is the way that the Federal Government will get out of the automaker business. As 61% owner of GM, the IPO will sell those shares, and (theorteically) the US people would get some, all (or even more, though I doubt it) of our money back.
      • 5 Years Ago
      Would be nicet o know what an IPO is.
        • 5 Years Ago
        "Google is your friend. ;)"

        Ah, my personal internet stalker rears his ugly mug again. Google would be Wiggy, if I hadn't been a qualified accountant since 1988.
      • 5 Years Ago
      Well, since Fiat alone currently has 20% of Chrysler shares, with option for 51%, that comes to 80% to 49% of Chrysler's shares would be available for everyone other than Fiat.
      • 5 Years Ago
      Count me in as a supporter of Sergio Marchionne's plan and philosophy. I definitely think it would be in Chrysler's interest to survey the terrain, allow the economy to rebound a bit more and let the dust settle before launching it's IPO.

      If Ed Whitacre and the folks at GM feel the time is right for them to cruise the lanes of Wall Street, then so be it. As for Chrysler, I think we can all agree this will be the last go 'round for the comapny if it fails. As a result of the stakes being so high for them, the slow but steady approach would be the logical, and most likely the best option for them. I am, however, encouraged by the recent news coming out of Auburn Hills.
      • 5 Years Ago
      Why wasn't this headline a question? You guys blew the run!
      • 5 Years Ago
      I'll be right there investing in the Chrysler IPO. I know a smart investment when I see one.
      No splash from Chrysler? What do you call the new Grand Cherokee, next generation 300C, Charger and the freshened upcomming minivans and midsized offerings?
      I'd get a towel real quick.
        • 5 Years Ago
        Don't get your hopes up. The Charger and 300 ride on old E-Class bits. Now that the relationship with Daimler is gone, Chrysler will have to develop them themselves. History teaches us that that hasn't been very good for them. Before you mention Fiat, remember that their specialty is small cars, not big hunkers like the 300 and Charger. They'll be disappointments. The GC I expect to do well in the market, but it won't live up to the hype the media's been putting out.

        I expect Chrysler to focus on, and with Fiat's help, exceed in, the small car market. The next-gen Sebring is still a ways away, but will blow the current one out of the water. Expect a Neon-sized compact to go toe-to-toe with the Civic, and maybe an MPV to slot under the Dodge Journey.
        • 5 Years Ago
        @ Frank: The E-Class parts will be almost ten years old if Chrysler uses them on the next 300. You can only use them for so long.
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