We've already reported on the attempts of Fiat to purchase the remaining 41.5-percent stake in Chrysler, currently owned by the United Auto Workers' VEBA healthcare trust. And while the issues still aren't resolved, Fiat has received both a bit of good news and a bit of bad news from a Delaware judge.

The good news is that the court ruled in favor on two key arguments of Fiat's, relating to what is a fair price for the Chrysler shares. The rulings essentially slash half a billion dollars off the price of the 54,000 shares owned by VEBA, according to a report from Reuters.

The bad news is that this makes the UAW an even more difficult opponent in negotiations. Its VEBA fund is meant to cover ever escalating retiree healthcare costs, so naturally, the UAW wants to get as much money as possible. Losing a big chunk of cash isn't likely to make the union more cooperative.

In the end, it looks like it's going to come down to one of two options. The rulings could encourage the two to settle matters out of court, which would likely be the fastest and most beneficial for all parties involved. The alternative is a 12- to 18-month trial, in which Fiat needs to prove that its offering for the VEBA shares is fair, while the UAW needs to convince the court that it requires a certain degree of funds to cover its healthcare obligations. We'll keep you updated.


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    • 1 Second Ago
  • 51 Comments
      johnnythemoney
      • 1 Year Ago
      The UAW (or anybody else) would fight hard even if the value was increased by half a billion, it really doesn't matter what the money is supposed to cover.
      Joe Wentz
      • 1 Year Ago
      Does the union want to get into the automobile business? I think not!
      John Murphy
      • 1 Year Ago
      Worse Idea ever .. Fiat....
      • 1 Year Ago
      [blocked]
      Julio B
      • 1 Year Ago
      Chrysler was on its last limb and very close to a certain death before Fiat took over. After Fiat it has become a serious world class manufacturer. I would've never considered buying a Chrysler before Fiat management and now I own two 2012 models. Why delay what has been great to a company?
        ishmaelcrowley
        • 1 Year Ago
        @Julio B
        Chrysler products (Ram pickup and Jeep) are saving FIAT not the other way around. FIAT is losing money and market share in Europe and Chrysler is keeping them afloat. FIAT's new products Dart and Cherokee have been a disappointment at best.
          aatbloke1967
          • 1 Year Ago
          @ishmaelcrowley
          Ishmaelcrowley - what absolute twaddle. You comments are complete conjecture, the new Cherokee is complete conjecture and you fail to mention the new Fiat multivalve in the Wrangler being lauded a success by dealers. Fiats largest issue is remaining competitive in Europe, where the market remains in th doldrums.
          thomas
          • 1 Year Ago
          @ishmaelcrowley
          The dodge dart ive seen every where the plat form is Alfa the engine is fiat
          Julio B
          • 1 Year Ago
          @ishmaelcrowley
          That may only be true if you were born six months ago and didn't know anything about Chrysler bankruptcy in 2009, Damlier and Cerberus ownership before that, the Dodge Caliber and the ridiculously bad quality of Chrysler products. Europe is now going through a recession and all brands are suffering there. The Dart is a great vehicle that has to endure the Neon and Caliber reputation and the Cherokee is not even on sale yet, so how can it be a disappointment? It has polarizing styling that has everybody commenting on, which is not a bad thing. The Nissan Juke went through the same thing and it's selling very well.
      Jeremy Pennini
      • 1 Year Ago
      Fiat and Chrysler are going to be one company why delay?
        aatbloke1967
        • 1 Year Ago
        @Jeremy Pennini
        It isn't a merger. Fiat are buying Chrysler. Chrysler is a subsidiary.
      Avinash Machado
      • 1 Year Ago
      If it was not for Fiat,Chrysler would probably not have remained in existence.
      Scr
      • 1 Year Ago
      When referring to FIAT, you need to use all caps as FIAT is an acronym of a proper name. You managed to be correct in your use of UAW and VEBA.
        aatbloke1967
        • 1 Year Ago
        @Scr
        If this were 1965, you'd likely be correct. But Fiat has long gone under the banner of non-capitalised nomenclature for decades.
      dentiom03
      • 1 Year Ago
      i've a 2013 Chrysler 300 best car I've ever owned now I'm gonna buy a Ram pickup, 4 wheel drive
        Bill Burke
        • 1 Year Ago
        @dentiom03
        Oh yea. I own a 2012 Chrysler 300 with all the goodies and man is it special. If more people drove this car they would be amazed at how good it is. Had to check my mileage three times on my trip from L.I. to West Palm Beach I just could't believe it, I got 30 mpg doing 75 most of the way. Smooth, quiet, handles like a dream and looks like a $65,000 car. Fit and finish as good as it gets. Your right, best car I ever owned.
      MARTHA & PERRY
      • 1 Year Ago
      Fix It Again Tony.
      Bill Burke
      • 1 Year Ago
      If and when the new Chrysler/Fiat goes public, I'm buying every share I can afford. First, I made money with my Chrysler, then Daimler Chrysler stock in the past. Second, I want to see Americans with a controlling interest in the corporation share holder body. I saw how the Europeans ran the show at Daimler- Chrysler and its all about shareholder clout. Message to every American building a portfolio, buy Chrysler and keep American voices heard. My hope is someday Chrysler will somehow buy out Fiat and keep them afloat, since I believe the Italian automaker has done good by Chrysler and deserves to be kept in the fold. Remember folks, buy the stock and be heard. It's patriotic.
        aatbloke1967
        • 1 Year Ago
        @Bill Burke
        "Second, I want to see Americans with a controlling interest in the corporation share holder body." You could always develop a US-domiciled corporation of your own and begin buying swathes of publicly traded Fiat shares.
        aatbloke1967
        • 1 Year Ago
        @Bill Burke
        Fiat is already publicly traded, so you can already buy its shares to your heart's content. This isn't a merger and there will be no new combined company. Once Fiat Chrysler's remaining shares, it will simply become a wholly owned subsidiary and remain a private entity.
          Bill Burke
          • 1 Year Ago
          @aatbloke1967
          My understanding is that a new corporation will be created and will include the "Chrysler" name and an I.P.O. will be issued. This new company may even be headquartered in the U.S.A. I think all the groups will then be folded into the new corporation. I think Fiat realizes that Chrysler must maintain its American identity, corporate culture and autonomous engineering and design status over much of it's product, as will the Italian brands,even though there will be a lot of sharing by some, to make this partnership work. That cash is burning a hole in my pocket so I hope your wrong on this one.
          aatbloke1967
          • 1 Year Ago
          @aatbloke1967
          "I saw how the Europeans ran the show at Daimler- Chrysler and its all about shareholder clout." I get it, now I see what your problem is. DaimlerChrysler was a straightforward merger: two companies, Chrysler Corp and Daimler-Benz, dissolved their existing capital and created new shares is an entirely new company, DaimlerChrysler. That is not the case with Fiat. Fiat simply bought swathes of Chrysler Group LLC shares until it attained enough to acquire control. That is not a merger - it is an acquisition (or buyout, or takeover, whichever nomenclature you prefer).
          aatbloke1967
          • 1 Year Ago
          @aatbloke1967
          It isn't a merger, it's a buyout. The deal is already done. Fiat SpA will remain in place as the holding company. Chrysler Group LLC was formed in 2009 after the bailout and Fiat has the controlling interest. In time it will be a wholly-owned subsidiary. There is no intention to disband Fiat, rename it Chrysler, move its HQ and dissolve Chrysler Group LLC. Chrysler Group LLC is an American corporation by virtue of its domicile - the domicile of its shareholders does not alter that fact. What are your qualifications when it comes to corporate structure? Are you a qualified accountant?
        aatbloke1967
        • 1 Year Ago
        @Bill Burke
        "Message to every American building a portfolio, buy Chrysler and keep American voices heard." Chrysler Group LLC isn't publicly traded, so how do you think you'll manage that?
      thomas
      • 1 Year Ago
      Chrylser needs Fiat if it was not for fiat thay woulg all be out of jobs
        Sir Duke
        • 1 Year Ago
        @thomas
        Chrysler needed a caretaker, not necessarily FIAT. It was very good that FIAT (Sergio) was there to steer them out of the muck. It was legacy Chrysler products that got them out of the hole. Only FIAT era product (Dart) has been lukewarm in sales. Chrysler today, with or without FIAT, would be okay. That is, as long as they don't jump back into bed with Daimler.
          Bill Burke
          • 1 Year Ago
          @Sir Duke
          True. But I like what Chrysler and Fiat are doing together and I believe much will be done with this partnership. The thought of a Maserati influenced Chrysler and a Jeep influenced Maseati just does something to me. Oh yea, they already are being done....sweet.
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