An initial public offering for the Chrysler Group could happen this week, following Sergio Marchionne's comments to Financial Times in London, according to a report from The Detroit News. Fiat, which owns 58.5 percent of Chrysler, has been in a battle with the UAW retiree healthcare trust over its minority stake in the company. While the automotive union recognizes its role as a temporary shareholder, the two couldn't come to an agreement on how the shares should be priced.

As Marchionne explained to FT, a Chrysler IPO allows the market, rather than the two competing sides, to determine the value of the shares. The public offering is a risky move, which could potentially hang one side out to dry - if the shares go high, it's bad news for Fiat, but if they go low, the UAW stands to lose. Regardless of where the stock prices go in an IPO, though, it's a move that's being supported by analysts, who are quick to cite Chrysler's near-constant growth and a product lineup that is getting healthier with each new introduction.


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  • 14 Comments
      William Flesher
      • 1 Year Ago
      This is the best way to determine the true value of the shares. Should be interesting to see what investors think it's worth.
      Avinash Machado
      • 1 Year Ago
      Raz is Sea Urchin with a new name.
      Bill Burke
      • 1 Year Ago
      I guess I'll be calling my broker. My loyalty to Chrysler had in the past and will going forward include an ownership stake. Perhaps small, it carries a lot of symbolic importance to me. I'm not only a Chrysler customer, but a Chrysler owner. That's me.
        avconsumer2
        • 1 Year Ago
        @Bill Burke
        Though attractive... unwise to make investments with emotional attachments. Just sayin'.
      • 1 Year Ago
      [blocked]
      rmt_1
      • 1 Year Ago
      I'm getting a strong feeling of deja vu of the infamous "bad old days" of Daimler/Chrysler when I hear or read anything from Marchionne lately. Right now, Fiat doesn't only want, but needs, a weak, but profitable Chrysler that would be easy to control without question. A strong, profitable Chrysler would actually be Fiat's greatest nightmare, because it would mean a major shift in power within the two companies meaning either Fiat would have to get used to maintaining an ongoing relationship with the UAW or miraculously get a loan from the Italian government to buy the UAW shares. Fiat is already feeling a lot of political heat in Italy over protecting Italian jobs at all costs, despite having a major over-capacity issue with their assembly plants there, and a story posted on Autoblog, about building a Jeep Grand Cherokee-based Maserati SUV in Italy even though there's capacity in the Michigan plant, seems to be proof that Chrysler is once again being served up as the sacrificial lamb. Just as Daimler stole billions from Chrysler to fund Mercedes-Benz's R&D for their next generation of cars, Fiat seems to want to raid Chrysler's profits to cover its money losing operations in Europe, so that they will not have to face the wrath of the Italian government for laying-off workers it otherwise would need to do without Chrysler's cash. This massive diversion of cash could also explain the lack of resources for new cars and the reason for their unexplained delays in product development, thus aiding Fiat keep Chrysler weak enough to take full control of, but without hurting the brand long-term. Fiat must be trying to time everything with a hopeful European recovery predicted to come in 18-24 months. I just hope Chrysler's interiors don't return to using plastics that would be too cheap to use in children's toys, like were used in the Daimler/Chrysler days.
        Bill Burke
        • 1 Year Ago
        @rmt_1
        You are spot on with just about everything, except one, in my opinion. As a former Chrysler and Daimler-Chrysler stock holder I personally witnessed the rise and fall of Chrysler and the arrogant treatment of Chrysler by European Daimler stock holders who resented Chrysler. In fact, Daimler was moving to improve Chrysler at first, but the nasty letters and heated exchanges at sock holder meetings and rising deficits at Mercedes changed that course. I respectfully differ with you on the motives and thinking at Fiat. I believe that Fiat clearly knows that Chrysler will be the driving force in this new company and the source of a large share of profit for all the elements in this global business. Italians, if anything, are astute business people and the business case for a mutually beneficial Chrysler driven operation is obvious and is being accepted and developed accordingly. As it's been quoted often " it's not personal, it's business", This partnership will work, this one carries mutual respect, if not absolute mutual need, and the long term plans reflect that thinking. I'm optimistic and will be buying the stock at the IPO.
      Street King
      • 1 Year Ago
      This is just to show VEBA that their share isn't worth 10 billion like they think it is. Notice Marchionne has been out of the public eye since this fiasco began? Notice the Jeep Cherokee held back for fabricated reasons? New Chrysler 200 held back a year, refreshed Challenger, Charger, 300, SRT4...ALL held back. They planned all of it so it would go cheap because they knew the IPO was going down after VEBA said they wanted 10 B. I am surprised Chrysler was still posting sales gains to be 100% honest.
        RGT881
        • 1 Year Ago
        @Street King
        With Marchionne cancelling scheduled appearances in Frankfurt, it certainly raises eyebrows, mine included. Looks like Sergio is willing to play hardball, and why not? The IPO will still be a long time away due to regulatory requirements and so forth. We'll see, I'm certainly pulling for Sergio because time and time again UAW has shown nothing, but greed. Hopefully the VW plant in Chattanooga is watching closely. These UAW cats would have been perfect in 1970s Britain. https://www.youtube.com/watch?v=UtWoOjx_Psk
      The Other Bob
      • 1 Year Ago
      So is it Italian still?
      icemilkcoffee
      • 1 Year Ago
      I dont understand it. If the UAW refuses to sell, how can Fiat force them to sell?
        Street King
        • 1 Year Ago
        @icemilkcoffee
        They don't want a piece of Chrysler, they want cash - so they'll sell their shares on the market.
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