At the moment, Fiat is in court with the United Auto Workers, waiting for the justice system to provide some guidance on a fair price for 41.5-percent of Chrysler it doesn't own. Fiat owns 58.5 percent of the company and wishes to buy the remainder, which is owned by the union's VEBA retiree trust, but the Italian company and the UAW are on different sides of the galaxy when it comes to assigning a fair price to that outstanding stake.

Naturally, Fiat CEO Sergio Marchionne is considering his options. A new report in the The Wall Street Journal says one of the scenarios being considered now is – depending on the outcome of the court case – to purchase the 41.5-percent stake and then issue an IPO to recoup some of the cost. About two months ago, Marchionne put the odds of an IPO for a wholly combined Fiat/Chrysler at 50 percent. Even with the WSJ report, it's not clear if those odds have changed.

The current company structure leaves a lot of options as to how a potential IPO could be issued, but it's said that Marchionne is against it, preferring "to be one company," under Fiat, indivisible. If Fiat is finally able to purchase all of the Pentastar, it would get access to Chrysler's war chest, pegged at $11.9 billion at the end of Q3 in 2012, and that money can't come soon enough for a brand taking a beating in Europe and delaying product over cash concerns.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 68 Comments
      avconsumer2
      • 2 Years Ago
      Yeesh. Careful Sergio.
      Mike Lee
      • 2 Years Ago
      Oh God...NO! It\'s bad enough that Chrysler\'s now have FIAT genes(!). As far as I\'m concerned, Chrysler is dead; I\'ll NEVER own a Chrysler vehicle again.
        Bill Burke
        • 2 Years Ago
        @Mike Lee
        I think Chrysler will survive without your business. They are building some great cars-- your loss.
          ChaosphereIX
          • 2 Years Ago
          @Bill Burke
          which ones? The Crysler GROUP does have some bright stars...but Chrysler as a badge on a car has nothing that makes me want to go into their showroom at all. They make a good minivan, truck, and an ok boulevard cruising muscle car. Viper is good too. 200/Avenger/Sebring/dogmeat is terrible. The 300 not much better although it is better than the last gen I will admit that. What else....cant be bothered.
          Chris
          • 2 Years Ago
          @Bill Burke
          ChaoshperlX You're contradicting yourself a bit here. First you're admitting that Chrysler has some bright spots, and then referring to them as dead weight. The Ram, Viper, Dodge Charger, Challenger, Chrysler 300, and Jeep Wrangler are nothing to scoff at. The 200 is not bad for what it is, essentially a stepping stone. I thought they did a good job with what they had to work with however. The Dart seems like a pretty nice car as well, though doesn't to be as embraced as much as initially thought. Overall, I'd say that they have one of the most interesting product portfolios of anyone. Now, that's not to say I wouldn't mind seeing a couple of Fiat and/or Alfa Romeo sports cars find their way to this market, just that those names don't carry as much weight, in this market, as Dodge and Chrysler do.
          ChaosphereIX
          • 2 Years Ago
          @Bill Burke
          Chris, Yes Dodge and Ram and SRT are doing some good things - mainly in the large car/muscle/truck segments. They can keep doing this. CHRYSLER as a BADGE [so the 200/300 etc.] are the dead weight. Not the Chrysler GROUP, but the BRAND - what I have been saying all along. No contradiction once you comprehend my meaning there. Sorry for the ambiguity if there was any. The 200 is terrible, it is a poor product and not worth putting in the showroom, even less so the Avenger. The Dart is nice for what it is, but it really needed to be a Giulietta just brought over as it was straight from Italy. Then it would have stirred the souls and gotten away from the "new Neon" stench that permeates the Dart. Alfas need to come here en-force and then we will see how much relevance Chrysler as a BADGE has these days. I say none.
      Wa
      • 2 Years Ago
      Here we go again another foreign car company going after Chrysler's money for future models. Taxpayer money saved Chrysler, Keep it American!!!!
        Matt
        • 2 Years Ago
        @Wa
        Do you think they would have made it this far on just bailout money?
          Shiftright
          • 2 Years Ago
          @Matt
          Fiat saved Chrysler from disappearing, and with it preserved thousands of American jobs. Duh...
      MAX
      • 2 Years Ago
      Pretty good chance FIAT becomes an American company.
        mmmoose
        • 2 Years Ago
        @MAX
        Can we call it "Fix It Again, Tom" instead of Tony then? But in all seriousness I think this is exciting news. I'm dying to see more subcompact hatchback options like the Punto Abarth and MiTo GTA make it on American soil.
        Avinash Machado
        • 2 Years Ago
        @MAX
        Agreed.
      lasertekk
      • 2 Years Ago
      So far, Fiat has not pulled a Daimler, nor does it appear they want to. If that continues to be the plan, then I have no issue with the greater, overall future plans Sergio may have.
      tump
      • 2 Years Ago
      As a San Francisco resident, Fiat makes cars for this market - Chrysler makes none. Not making a small car takes Chrysler completely off the list of buyers here.
        montiem2
        • 2 Years Ago
        @tump
        You do realize that most of the country is nothing like San Francisco, right? I see plenty of 200s and 300s driving around.
        CEC
        • 2 Years Ago
        @tump
        Curious, have you even heard of the Dart?
          ChaosphereIX
          • 2 Years Ago
          @CEC
          true, but that is a Dodge. Chrysler as a car brand, not a group, has no relevance other than in the rental fleets.
          Chris
          • 2 Years Ago
          @CEC
          ChospherelX The Dodge Dart is based off the Alfa Romeo Giulietta. It's the very thing you were saying we need here in one of your previous posts. So what I'm getting is that just because it says "Dodge" on it, it must be rental fleet junk. No? By saying that, you come across as another one of those wanna-be aristocrats who's stuck in the 80s, and has a chubby for all things European.
          William Flesher
          • 2 Years Ago
          @CEC
          The Dart is a C class model, considerably larger than the A class Fiat 500.
          ChaosphereIX
          • 2 Years Ago
          @CEC
          Chris, Dude you just dont get it. CHRYSLER, as A BADGE - you know the emblem on the front of the damn car - is the irrelevant brand. CHRYSLER GROUP still has some good things going, mainly in the truck/offroad/muscle car arena. Please comprehend this. And you are absolutely right the Dart is worse off since it is a Dodge, if it was an Alfa Romeo Giulietta, over here with its sexy styling and Italian driving characteristics, then it would have been leagues better. Not a modernized Neon as the Dart seems to be. I like European cars because, for the most part, they offer vehicles that are meant to be driven, have passion and soul in their bodywork and driving characteristics, and make you want to go out and drive. Very, very few 'Murican cars have ever had those on their resumes to me. If it was the mid 90s, and you were shopping for a car, would you rather have a Cavalier or an Alfa 155 Q4? I know what I would pick. Same story today, sadly.
          Chris
          • 2 Years Ago
          @CEC
          ChaospherlX I get it perfectly well. Some will write off cars, like the Dart, because of the badge on the front. Those folks are the followers, posers, etc. I disagree with the notion that Chrysler is irrelevant. I would say it's a lot more relevant in this market than Alfa Romeo, or Fiat is. When most people here think of Alfas, the little red roadster that Dustin Hoffman drove in the 1967 film 'The Graduate' comes to mind. Before the Fiat 500 made its debut here a couple of years ago, the last Fiats on our shores were from 1985, and they didn't have a very good reputation then. I love some Italian sports cars as well, but I don't think they should replace our American brands. Chrysler and Dodge have a lot of history, and therefore carry a lot of weight, in terms of recognition. Just because a bunch of Euro fanboys say they won't be caught dead in a Chrysler does not mean everyone else feels that way. If that were the case then they wouldn't be experiencing the turnaround that they have.
        MAX
        • 2 Years Ago
        @tump
        Chrysler is the fastest growing car company in California. http://media.chrysler.com/newsrelease.do;jsessionid=DB2801A34F9CD82AB5FB09352656B959?&id=14040&mid=2
      ChaosphereIX
      • 2 Years Ago
      yay! Hope Sergio finally kills off all the dead weight at Chrysler/Dodge and brings over Alfa and Fiat en-force like he should have done 5 years ago. Alfa would flourish here. "Without soul we would be mere machines...": true undeed
        Bill Burke
        • 2 Years Ago
        @ChaosphereIX
        That "dead weight" is keeping the business growing and growing. What dead weight are you talking about? Chrysler can't build enough vehicles to meet demand or have you not been paying attention? Me thinks the "dead weight" might be from the neck up on this topic.
          richard gear
          • 2 Years Ago
          @Bill Burke
          A revamp of styling would be a benefit of some Italian influence. I think that styling has been ignored as the VP has been preoccupied with SRT & racing along with the "cult of personality", taking over core responsibilities, they have been on the wrong path.
        lasertekk
        • 2 Years Ago
        @ChaosphereIX
        Would welcome a return of other sports/sporty cars from the Fiat-Alfa-Lancia family.
          ChaosphereIX
          • 2 Years Ago
          @lasertekk
          agreed. Nothing in the Chrysler lineup stirs the soul. Like I said, dead weight. Avenger? 200? Puhlease...
        Chris
        • 2 Years Ago
        @ChaosphereIX
        You haven't been paying attention, have you? If you had then you would have realized that what you said does not make one bit of sense. Fiat's been struggling over in Europe, while Chrysler has experienced a huge turnaround here in North America.
      Jerry
      • 2 Years Ago
      Man, I saw one of the new Vipers on the road today with M plates. What an awesome, mean looking car! Kind of off subject, but holy crap do I want a new Viper!
        Drakkon
        • 2 Years Ago
        @Jerry
        I saw a burgundy one at one of those clear auto bra places. It *appears* much smaller. The older vipers looked big, I think the new one is nearly the same size, but the proportions make the car look much smaller. Looked great. Looked Expensive! I don't remember having that impression of vipers before.
      WHO
      • 2 Years Ago
      It's a crying shame Obama gave all that stock to the UAW. But he did have to pay back the UAW for all the cash the UAW spent to hire homeless people to protest and rallly all across the USA. Hopefully after the French take control of Chrysler, they kick the UAW to the curb!
        • 2 Years Ago
        @WHO
        [blocked]
        Arthur Dunning III
        • 2 Years Ago
        @WHO
        How are you so sure the French will take over Chrysler? None of the French auto companies have expressed any interest in doing so.
      Street King
      • 2 Years Ago
      Fiat isn\'t exactly broke, they have around 9 billion themselves. Either way, when merged up Chrysler has to stay the #1 priority as its clearly the bread winner in this relationship. A slice of those profits can get slotted to Maserati and Alfa Romeo to get them going, as they\'ll do fine and Chrysler also needs those parts and platforms for future models. Fiat has to cut the BS and start laying off workers to reduce capacity in Italy. Between that and their South America business (they make more money there than they do back home) they\'ll be fine and can wait out the European mess. So yeah, merge them, but don\'t start robbing Peter to pay Paul. Run the businesses properly and everything will be fine.
        GreenN_Gold
        • 2 Years Ago
        @Street King
        $11.9 billion, according to the link in the post itself.
          Feurig
          • 2 Years Ago
          @GreenN_Gold
          Street King is talking about Fiat. $11.9 billion is Chrysler...
          GreenN_Gold
          • 2 Years Ago
          @GreenN_Gold
          I read Street King's post wrong somehow, clearly. I blame the late afternoon work brain that was in need of a siesta.
      Shiftright
      • 2 Years Ago
      When I see that photo I hear "New York's hottest new club is..."
        Swagger
        • 2 Years Ago
        @Shiftright
        I suspect your SNL reference will miss it\'s mark in this strata of the interweb.
          Shiftright
          • 2 Years Ago
          @Swagger
          That means only the cool kids will get it. Congrats!
          richard gear
          • 2 Years Ago
          @Swagger
          I am usually out on a Saturday night having fun....and not sitting at home with my Xbox and the TV on watchin SNL....
          Drakkon
          • 2 Years Ago
          @Swagger
          New York's Hottest Valentines day club is Huyahusayhuhuhuhu!
          Camaroman101
          • 2 Years Ago
          @Swagger
          Boooo! MADTV for life!
      Felspawn
      • 2 Years Ago
      as long as they keep Chrysler competitive so be it
        tinted up
        • 2 Years Ago
        @Felspawn
        Of course they will. Chrysler is increasingly being recognized as having much more leverage than anything else in Fiat's product portfolio.
    • Load More Comments
    Share This Photo X