There will not be a Chrysler IPO in 2013. Fiat, according to a report from Forbes, has announced that it will not be able to make the American brand's initial public offering before the end of the year, saying that the short, five-week window that makes up the rest of 2013 is "not practicable."

Not surprisingly, the issue with the Chrysler IPO is the same as it's always been - a disagreement between parent company Fiat, which owns 58.5 percent of the Chrysler Group and a UAW healthcare trust, which owns 41.5 percent. Fiat wants to buy out the UAW VEBA healthcare trust, which is responsible for shouldering retiree healthcare costs, but the two sides are hung up on an actual price tag for the remaining two-fifths of the company.

The original idea saw an IPO as a way of setting a fair market price for the remaining shares, although it's not entirely clear what broke down and led to a delay of the IPO plan. As Forbes points out, by waiting until 2014, Chrysler could be risking a cool-off in the IPO market, which could mean less money in its pocket when the automaker finally goes public.

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
      • 1 Year Ago
      I don't think Chrysler is "risking a cool-off in the IPO market" as they want the price to drop. Chrysler isn't planning to sell any of its own shares, they just want to buy the ones the UAW has. The lower the price the better for Chrysler to some extent. The UAW is the one at risk which is likely why Chrysler/FIAT is pushing the date back. Chances are, they will take the company private in the not too distant future as they really don't want to be doing this IPO in the first place. The only reason for going public is to settle the disagreement as to what the shares are actually worth.
      • 1 Year Ago
      It is disgusting that Obama handed over that chunk of Chrysler to the Detroit Mafia.
        • 1 Year Ago
        Yep, he did it without any input from analysts, experts. Too bad he didn't have you working for him to show him how to run a country. What do you do for a living?
      • 1 Year Ago
      aaaaand there goes the Alfa 4c
      • 1 Year Ago
      is practicable a word?
        • 1 Year Ago
        From Merriam-Webster: prac·ti·ca·ble adjective \ˈprak-ti-kə-bəl\ : able to be done or used Full Definition of PRACTICABLE 1 : capable of being put into practice or of being done or accomplished : feasible 2 : capable of being used : usable — prac·ti·ca·bil·i·ty noun — prac·ti·ca·ble·ness noun — prac·ti·ca·bly adverb
    Share This Photo X