The four-year relationship between Fiat and Chrysler has thus far been beneficial for both automakers, but it has also proven to be a complicated battle between Sergio Marchionne and the United Auto Workers – the latter controlling the remaining 41.5 percent of Chrysler. With the recent filing for a US IPO, it looks like Marchionne and the UAW appear to be playing a billion-dollar game of chicken, with both sides far apart on how much the union's shares are worth. If it comes down to Chrysler's remaining stake being publicly traded, it could act to drive a wedge between the two companies.

According to Bloomberg, Fiat's chairman John Elkann says "if the IPO will take place, there will be two companies, and that's different than having a single one." Now, we're not great at math, but this sounds like the complete opposite of the full merger that Marchionne has been pushing for since taking the helm at Chrysler. Bloomberg notes that the UAW's shares should be worth around $5.6 billion, but Fiat could end up paying as little as $4.9 billion for Fiat to gain full control of Chrysler. A story by The Detroit News points out that Marchionne's "alleged low-balling" is just the latest hurdle the Auburn Hills-based automaker must overcome as its ownership is being fought over for the fourth time in 15 years.


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  • 41 Comments
      Fazzster
      • 1 Year Ago
      I love my FIAT and Chrysler products have certainly improved under Marchionne. I hope a good thing is not ruined by the unions.
      kagroyalo
      • 1 Year Ago
      I can see where Chrysler may error on the side of caution. In 1998 before \"The merger of equals\" Chrysler\'s product line-up was strong and they were, I believe, the most proftable of the Big 3. While Daimler did give some technology, all I remember is \"forcing\" out Chrysler\'s management, poor marketing decisions, cheapening the cars and using up all Chrysler\'s money to the point were the only company that would think of purchasing them was a private equity firm. In fairness many things (ie. the updated Ram, Cherokee, Pentastar V-6) were on the table under Daimler and Fiat reaped the benefits using their money. I would think using Fiat\'s resources they would be saving any money lost in product development alone. I hope cooler heads prevail as I do think they are much stronger together
        AudiA4
        • 1 Year Ago
        @kagroyalo
        They were, in fact, the most profitable car company in the WORLD at the time they "merged" with Daimler.
      Street King
      • 1 Year Ago
      Sergio, pay-up. You got the first half for free, the least you can do is pay the still reduced rate of 5-billion for the second half. Pay them, take it and continue to improve it and cherish it like the golden goose that it is. With the excess profits, jointly develop world class RWD platforms for Alfa Romeo (shared with Dodge) and get that brand up and where it needs to be. But DO NOT, I repeat - DO NOT impede on Chrysler's future product, marketing or momentum in any way, shape or form. If Fiat is gushing money, that's Fiats problem and you need to address that issue by shuttering plants and downsizing until the storm passes. You don't rob Chrysler.
      Teleny411
      • 1 Year Ago
      The real villians were Cerberus. They just took cash out and left the cupboards bare.
      nocommie11
      • 1 Year Ago
      Who still buys 'Murican cars?
        Pat
        • 1 Year Ago
        @nocommie11
        I do! And I'm Canadian!
        Healthy Chap
        • 1 Year Ago
        @nocommie11
        A lot of people, apparently. I just don't get Chrysler buyers in general. But hey, to each their own, I'd just never touch them knowing their mechanical woes.
          omgcool
          • 1 Year Ago
          @Healthy Chap
          I don't think you know their "mechanical woes." Today, the Mopar brands are right up there with the best again. Personally, I bought my 200 Limited V6 for the way it makes me feel when I drive it. It's a car that I'm proud to work for and call my own. In addition, it feels like a step above most others in its class quality-wise, all while being one of the better values on the market.
        • 1 Year Ago
        @nocommie11
        [blocked]
      A P
      • 1 Year Ago
      This is the truth of the matter. Fiat is on its ass...almost broke. Chrysler is sitting on a ton of it and SM want it or Fiat may go under. DONT DO IT. Once Fiat has the cash, MOPAR is once again left by the side of the road. The European vultures need to stop. MB did it once. Never again.
        Jesus!
        • 1 Year Ago
        @A P
        I am with you AP! MB is partly why Chrysler is in this mess.
        Seal Rchin
        • 1 Year Ago
        @A P
        You do realize that Chrysler was bankrupt. You can blame the economy all you want, Chrysler had deeply uncompetative product, the only asset Chrysler had was Jeep (wrangler and Cherokee....just these two) if it died Chrysler would have been forgotten by now. Fiat SAVED Chrysler.
          Jesus!
          • 1 Year Ago
          @Seal Rchin
          Actually MB is the one who got Chrysler in the mess of having poor products. They were a profitable company prior to the merger/buyout with MB. Then MB was done with them and left them to rot. And the Government saved Chrysler. Fiat is a money losing mess right now.
      Danielus
      • 1 Year Ago
      Guys, stop hating on FIAT, if it werent for FIAT chrysler would have been dead. And Fiat isnt going do take the money and leave, it was because of Fiat that chrysler has any money and Fiat needs them to reboot the european market by investing in new Maserati and Alfa Romeo models. Second of all, stop saying that MB took the money and left. CHRYSLER HAD NO MONEY. And the most popular chrysler vehicles are actually based on Mercedes cars. Three examples are the Jeep Cherokee, Dodge Durango and Chrysler 300. In other words, they tried, many have tried, Nissan too. Fiat are the only one that has been able to turn Chrysler around...
        Jesus!
        • 1 Year Ago
        @Danielus
        Fiat cannot even keep itself above water. Give me a break.
          Destra79
          • 1 Year Ago
          @Jesus!
          Jesus! FIAT has been around since 1899 - survived in the heart of two world wars, attacked by red brigades - I doubt an Italian recession will bring them down. You know they are the number one automaker in South America.
      T-Mille
      • 1 Year Ago
      I will be so mad if the UAW forces Fiat and Chrysler apart. Fiat is the best thing that has ever happened to Chrysler, and if the UAW ruins the upcoming Golden Age for Chrysler, I will never show any remote signs of sympathy for them ever again.
      telm12345
      • 1 Year Ago
      UAW - because mooching.
        lunger5019
        • 1 Year Ago
        @telm12345
        You know nothing about this . The employees Health/Care Program is who owns the 41%
      Jeff Gilleran
      • 1 Year Ago
      The UAW would be out of a JOB if it weren't for Fiat first off. Nothing like a continual **** sandwich fest fighting the UAW leeches. I think Sergio should just pay them and recover the losses later, All they need to do is a "strike" and tons of money will be lost and the company could be brought to its knees in no time. Pay them.. Just get it over with.. waiting game is not worth it.
      rmt_1
      • 1 Year Ago
      Sergio Marchionne should just stop this IPO bluff, bite the bullet, and pay the UAW the $6-$7 billion dollars they "really" want to get the shares now before it's too late for Fiat. Every day this situation drags on, Fiat will get weaker and Chrysler will get stronger. According to Bloomberg, Fiat's stock value is $10.4 billion dollars and Chrysler's estimated value is $13.5 billion dollars right now and that separation in value will just grow even wider over time and could leave Fiat vulnerable to a costly takeover attempt within 3 years without access to Chrysler's profits. Car sales in Europe have not bottomed yet and the beginnings of real economic recovery there could be 18-24 months away; Fiat, without Chrysler, would not be able to earn enough profits from the recovering North American market to help cover its European overhead and Fiat doesn't have a significant presence in the Chinese market yet to get help from there either. Time is not on Marchionne's side, because an IPO could easily set Chrysler's value out of reach at over $15 billion dollars and that in turn would hurt Fiat's stock value even more, possibly below $8 billion dollars. Paying less than $4.9 billion dollars was as much as a pipe dream as getting over $10 billion dollars was, except the UAW seemed to know that from the beginning and Marchionne surprisingly didn't.
      • 1 Year Ago
      [blocked]
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