Autoblog

Fiat talking with banks about buying rest of Chrysler

Jeffrey N. Ross — Wed, 13 Feb 2013 11:29:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials, Fiat

All that stands in the way of Fiat's total ownership of Chrysler is a 41.5-percent stake currently held by the United Auto Workers healthcare trust, but according to SFGate.com, Sergio Marchionne is currently trying to raise the capital to complete the acquisition. The article says that a deal could be completed in as soon as 12 months, and the estimate for the remaining stake could cost Fiat SpA around $2.98 billion.

With a goal of completing the deal by the end of 2014, Marchionne is said to be in talks with various banks to help finance some of the deal. According to the report, the banks have indicated a need for a stronger balance sheet, controlled debt and reserve cash.

Two things that don't seem to be on the table to get the deal completed include issuing new shares to raise the capital or selling a stake in Ferrari. Fiat started with a 20 percent share of Chrysler in June 2009, and it raised its stake up to 58.5 percent in January 2012.

Fiat talking with banks about buying rest of Chrysler originally appeared on Autoblog on Wed, 13 Feb 2013 11:29:00 EST. Please see our terms for use of feeds.

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Fiat may control Chrysler, but it can't reach in its pockets

George Kennedy — Mon, 06 Aug 2012 17:35:00 EST

Filed under: Europe, Chrysler, Earnings/Financials, Fiat

Despite the fact that Fiat has a controlling stake in Chrysler, the Italian automaker cannot take advantage of the Pentastar's recent success to ease its pain in Europe.

Chrysler is on a roll right now, with an improving product portfolio, most recently highlighted by the Dodge Dart small car. The Pentastar brand has combined cash and credit worth $13 billion, but according to a new USA Today report, the Italian automaker cannot plunder Chrysler to address shortfalls on its end. Fiat was forced to cut capital expenditures in 2012 by $612 million, and while the brand posted a $440 million profit, without Chrysler's earnings, it would have been a $302 million loss.

So while the temptation might be there to move around funds where it is needed most, protections have been put in place by the U.S. government. According to Marichionne, "Firewalls are up, [Fiat] can't get to it."

As part of the original deal with Fiat and the U.S. government bailout, Fiat cannot get access to Chrysler's increasing stockpile of cash. It can, however, keep profits, of which Chrysler earned $436 million in the second quarter off this year.

Fiat may control Chrysler, but it can't reach in its pockets originally appeared on Autoblog on Mon, 06 Aug 2012 17:35:00 EST. Please see our terms for use of feeds.

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Fiat increases Chrysler stake to 58.5%

Jeff Sabatini — Thu, 05 Jan 2012 16:29:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials, UAW/Unions

How important is the forthcoming 2013 Dodge Dart to the future of Chrysler? Well, it allowed Fiat to boost its stake in Chrysler for the fifth time in the past year today, adding five percent to bring Fiat's total ownership to 58.5 percent.

That's because the new Dodge sedan scored a combined 40 miles per gallon in CAFE fuel economy testing, triggering the increase in ownership under the operating agreement reached following the Chrysler bankruptcy proceedings. (Note that the 40 mpg number is unadjusted, meaning that the actual EPA combined fuel economy, the one published on the window sticker, will be lower.) Chrysler sent the United States Treasury a letter stating that it was "irrevocably committed to begin assembly" of the Dart at its Belvidere plant in Illinois. Chrysler will take the wraps off the Dart on January 9 at the Detroit Auto Show.

Fiat's stake in Chrysler has grown considerably since it received its initial 20-percent share in the immediate aftermath of the automaker's bankruptcy. The Italian automaker has now met all the "performance events" of its agreement with the Treasury, and could buy out the United Auto Workers healthcare trust that owns the remaining 41.5 percent of the company, according to a report in Automotive News. However, that report indicates that Fiat's financial situation may not be solid enough to do so - at least not right away.

To read Chrysler's full press release, click through to the jump.

Continue reading Fiat increases Chrysler stake to 58.5%

Fiat increases Chrysler stake to 58.5% originally appeared on Autoblog on Thu, 05 Jan 2012 16:29:00 EST. Please see our terms for use of feeds.

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Fiat buys another 16 percent stake in Chrysler, ups total to 46 percent

Zach Bowman — Thu, 21 Apr 2011 12:46:00 EST

Filed under: Etc., Chrysler, Earnings/Financials, Fiat

Automotive News is reporting that Fiat has paid $1.27 billion for an additional slice of Chrysler. The news follows a move by the Italian automaker last week that saw its total ownership jump to 30 percent. The newest acquisition increases that total to 46 percent, and analysts are predicting that the Pentastar's latest partner may make the jump for a majority stake sometime soon. Fiat's CEO, Sergio Marchionne, has already been quoted as saying that his company would like to eventually have control of the smallest of the Big Three. If that happens, it's assumed that Marchionne would immediately push for an IPO.

The last five percent of the puzzle hinges largely on the effective launch of a new 40-mpg vehicle slated to be unveiled later this year. Chrysler is also said to be on track to complete its debt refinancing by the end of the second quarter, which puts the American manufacturer closer to going public than it has been since bankruptcy.

Previously, the latest swell in Fiat ownership had come after the automaker met a number of goals, including ensuring that at least 90 percent of its South American dealerships sold a Chrysler product.

[Sources: The Detroit News, Automotive News - sub. req.]

Fiat buys another 16 percent stake in Chrysler, ups total to 46 percent originally appeared on Autoblog on Thu, 21 Apr 2011 12:46:00 EST. Please see our terms for use of feeds.

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Report: Dodge to get 40-mpg small car

Steven J. Ewing — Mon, 15 Nov 2010 10:27:00 EST

Filed under: Budget, Chrysler, Dodge

2006 Dodge Hornet concept - Click above for high-res image gallery

Chrysler has announced that it is working on a small car for the Dodge lineup capable of achieving fuel economy of 40 miles per gallon. This new model will be based on Fiat architecture and is expected to debut near the end of 2011. No word has been given as to whether or not the new Dodge will rival B-segment offerings like the Ford Fiesta or C-segment vehicles like the newly introduced Hyundai Elantra. Longtime Autoblog readers will no doubt recall that a high-mpg small Chrysler has been on the table seemingly for ages, since before the well-received Dodge Hornet concept car of 2006, a vehicle that was said to have been greenlit for production a handful of times, albeit to no apparent result.

Aside from the North American-spec Fiat 500 that debuts at this week's Los Angeles Auto Show, the new Chrysler/Fiat partnership has yet to produce any real fruit. In the meantime, the automaker has been heavily reworking its product portfolio, offering new powertrains and better refinement for the full slate of Chrysler, Dodge and Jeep products.

Gallery: Dodge Hornet Concept

[Source: Automotive News - sub. req.]

Report: Dodge to get 40-mpg small car originally appeared on Autoblog on Mon, 15 Nov 2010 10:27:00 EST. Please see our terms for use of feeds.

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Detroit News: Chrysler sues multiple states over dealer laws

Dan Roth — Sun, 03 Jan 2010 15:42:00 EST

Filed under: Etc., Government/Legal, Chrysler

So you're Chrysler, and you hop into the Chapter 11 pool to save your own skin. While you can wash away some of your past sins with a bankruptcy-protection filing, the deal with Chapter 11 is that you've got to come up with a way to get out of your financial pickle and return to profitability. Part of the Chrysler plan to keep its head above water was divestiture of 789 dealers, a very unpopular idea with the rejected sales organizations (and no small number of politicians, whose ears were subsequently bent by the affected dealers).

When adversity strikes, what else is there to do but unleash legislative changes and legal challenges to and fro like archers' arrows? Recent alterations to dealer laws in Oregon, Maine, North Carolina and Illinois contradict bankruptcy code and are unconstitutional. The new laws allow the states to block Chryser from granting a new franchise or relocating an existing dealership into a market once belonging to a rejected dealer.

In response, Chrysler has fired off a lawsuit in Manhattan bankruptcy court naming eight parties as defendants, including the Oregon Attorney General, secretaries of state in Maine and Illinois, and other transportation officials. The filing argues that the laws being contested would force Chrysler to give consideration to the dealers for rights that they do not have, and furthermore, the dealer rejections were approved as part of the sale to Fiat.

[Source: The Detroit News]

Detroit News: Chrysler sues multiple states over dealer laws originally appeared on Autoblog on Sun, 03 Jan 2010 15:42:00 EST. Please see our terms for use of feeds.

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Chrysler to launch four Special Editions in first quarter of 2010

Jeremy Korzeniewski — Wed, 04 Nov 2009 18:01:00 EST

Filed under: Convertible, Sedan, Hatchback, Chrysler

Much has been made of Chrysler's apparent lack of new products for the 2010 model year. Suffice it to say, while there are big things in store for Chrysler, they will take at least another year to get into production. For instance, while removing the unsightly strakes from the hood of the unloved Sebring sedan and convertible is a nice gesture, it's not nearly far enough to make the car suddenly competitive with its chief rivals in the ultra competitive mid-size sedan arena.

Not entirely surprisingly then, Chrysler is trying its best to add a few reasons to purchase its current models before the major changes happen in the next few years. Each of Chrysler's current nameplates - 300, Town and Country, Sebring and PT Cruiser - get Special Editions that will hit the market in the first quarter of 2010.

First, the 300 is slated to get a complete redesign later on in 2010, probably as a 2011 model vehicle. Regardless, the current 300 will get a Sport Edition that's targeted at the youth market before the reboot button is officially pressed. The Town and Country gets a Fashion Edition and the Sebring gets an Ocean Edition (we have no idea what that means).

Lastly, the long-in-the-tooth PT Cruiser gets a Final Edition (finally final? Promise?) and the nameplate is not scheduled to live on past the 2010 model year. So, if you want one... better hit your local dealer post haste. As a parting note, Chrysler never actually mentioned it, but take a good look at the new Chrysler 300 brochure at the top right of the image above - that doesn't look like the current 300 grille, does it? Hint, hint.

Chrysler to launch four Special Editions in first quarter of 2010 originally appeared on Autoblog on Wed, 04 Nov 2009 18:01:00 EST. Please see our terms for use of feeds.

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Chrysler to outfit Fiat 500-approved dealers with specific showroom "salons"

Jeremy Korzeniewski — Wed, 04 Nov 2009 16:40:00 EST

Filed under: Coupe, Marketing/Advertising, Chrysler, Fiat

Fiat 500 - Click above for high-res image gallery

Listening to Chrysler's long and rambling 2010-2014 Business Plan, it was clear that the company and its dealerships are very much looking forward to finally getting the Fiat 500 in North America. Much like what happened when BMW launched the Mini brand eight-odd years ago, it's hoped that the cute little 500 will attract a whole new customer to the Chrysler fold.

In order to properly court those new ~~wallets~~ buyers, Chrysler plans to open "specific interior showroom branded salons" in select dealerships, mostly in metropolitan areas. A dedicated set of salespeople will be assigned to sell the Fiat 500 in the States... ya know, since they otherwise wouldn't know how to sell the important car to American consumers.

There will also be a full line of accessories made available to customize the new car, which we would expect will include unique color and stripe packages both inside and out along with a slew of optional wheel designs. Whatever, make ours an Abarth and we're good. Expect all of this to take place before the end of 2010 as the Fiat 500 finally starts to show up in those selected dealerships.

Gallery: Fiat 500

Chrysler to outfit Fiat 500-approved dealers with specific showroom "salons" originally appeared on Autoblog on Wed, 04 Nov 2009 16:40:00 EST. Please see our terms for use of feeds.

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Ciao! Fiat to build Chryslers in Italy?

Chris Shunk — Thu, 17 Sep 2009 14:39:00 EST

Filed under: Europe, Plants/Manufacturing, Chrysler, Jeep, Fiat

Fiat is hard at work trying to come up with the best available use of its newly acquired Chrysler arm. Part of that plan may be to sell more Chrysler products in Europe, and Fiat just so happens to have an available factory to build them in. Automotive News is reporting that Fiat CEO Sergio Marchionne says the company would use its freshly purchased Carrozzeria Bertone plant near Turin, Italy. Fiat purchased the facility in July, just a few weeks after Chrysler exited chapter 11 bankruptcy.

Marchionne declined to discuss which vehicles would be built at the factory, but those following the Italian automaker have plenty of reasonable guesses. AN quotes sources who say the facility could open as soon as late 2011, and it could build the next generation Chrysler 300. The upcoming new 300 will reportedly begin production in the US in early 2011, and the 300's RWD platform is rumored to be used in future Alfa and/or Lancia models. The sources also claim Jeep models could be built in other Fiat facilities by using complete knock down kits shipped from here in the US.

[Source: Automotive News - Sub. Req'd | Photo: DAMIEN MEYER/AFP/Getty Images]

Ciao! Fiat to build Chryslers in Italy? originally appeared on Autoblog on Thu, 17 Sep 2009 14:39:00 EST. Please see our terms for use of feeds.

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Will Chrysler get Fiat Ducato or Iveco Daily to replace departing Sprinter?

Dan Roth — Tue, 08 Sep 2009 08:59:00 EST

Filed under: Minivan/Van, Work, Chrysler, Dodge, Mercedes-Benz, Fiat, Specialty

Fiat Ducato - Click above for high-res image gallery

Easy come, easy go - that's apparently Chrysler's luck with repurposed European-market work trucks. For the last few years, Chrysler has offered the German-designed Sprinter van under the Dodge nameplate. Mercedes-Benz wants its rig back, so it's taking the well-regarded work vehicle out of Pentastar dealerships and anointing about 120 of its own dealerships as Sprinter outlets. Consider it more terms of Chrysler's divorce from its one-time masters.

Now that Chrysler's ownership has moved south to Italy's Fiat, the Euro-work-truck hole in the showroom may be filled by something from the new management's portfolio. The Iveco Daily from Fiat's work truck division might easily fill the Sprinter's void. About the same size as the full-length Sprinter, the Daily might be a little too much for buyers considering the shorter versions of the captive Daimler. Fiat's Ducato might be a better fit, offering the tall format that Sprinter buyers have found useful without being quite as large at the Iveco.

If either truck heads this way to fill the void, it will not be badged as a Fiat. Gualberto Ranieri, Chrysler's Senior Vice President of Communications, has asserted that "the only Fiat vehicle in North America will be the Fiat 500. Period."

Gallery: Fiat Ducato and Iveco Daily

[Source: Automotive News - Sub. Req'd]

Will Chrysler get Fiat Ducato or Iveco Daily to replace departing Sprinter? originally appeared on Autoblog on Tue, 08 Sep 2009 08:59:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler could pull out of Global Engine alliance, put Fiat diesel in Ram

Sam Abuelsamid — Sat, 29 Aug 2009 11:56:00 EST

Filed under: Plants/Manufacturing, Chrysler, Fiat, Diesel

As Chrysler moves forward with its post bankruptcy product plans, it's looking increasingly like consolidation with new partner Fiat is the order of the day. Following the cancellation of the platform sharing deal with Nissan, it appears as if the company's interest in the Global Engine Manufacturing Alliance could be the next victim. The agreement in question was formed early this decade between what was then DaimlerChrysler, Hyundai and Mitsubishi to produce common four-cylinder engines for the three automakers. Since then, variants of the engine design have turned up in cars as diverse as the Jeep Compass and Patriot, Hyundai Sonata and Mitsubishi Lancer.

Part of Fiat's rationale for getting involved with Chrysler was the expanding economies of scale for its own products. That means future Chryslers will almost certainly get Italian designed fours to go with the company's new Phoenix V6. It's not clear what the fate of the five-year-old Dundee, MI engine plant that supplies the Chrysler engines will be. If the alliance is dissolved, it could be taken over by Chrysler-Fiat and re-tooled to build Fiat-based engines.

Automotive News is also reporting that the Ram diesel could get a new lease on life. However, the planned Cummins 5.0-liter V8 could be replaced by - you guessed it - a Fiat diesel.

[Source: Automotive News - sub. req'd]

REPORT: Chrysler could pull out of Global Engine alliance, put Fiat diesel in Ram originally appeared on Autoblog on Sat, 29 Aug 2009 11:56:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler to display at Fiat booth in Frankfurt

Noah Joseph — Thu, 27 Aug 2009 08:30:00 EST

Filed under: Frankfurt Motor Show, Marketing/Advertising, Chrysler, Fiat

Chrysler Deputy CEO Jim Press arrives on stage at the 2009 New York Auto Show in a Fiat 500

Ever since the deal for Fiat to effectively take control of the troubled Chrysler group took effect, we've harbored a lot of questions over how the two companies would interact. With Fiat CEO Sergio Marchionne taking the big office in Auburn Hills, some speculated that the two automakers would, in essence, merge, while others looked to Nissan and Renault chief exec Carlos Ghosn as a potential example - that is, keeping the two companies allied but run separately. Well, we may have our first glimpse at the answer with reports that the two automakers will be displaying together as one unit at next month's upcoming Frankfurt Motor Show.

Both Chrysler and Fiat have a history of making big splashes at auto shows, and Frankfurt will be the first major car expo since the alliance was reached. Chrysler, for the most part, has kept a low profile since emerging from bankruptcy two months ago. And according to the latest reports, Chrysler will be limited to a section of the Fiat stand. Whatever approach Marchionne takes towards his two charges in Frankfurt, you can bet everyone will be taking notice.

[Source: The Detroit Bureau]

REPORT: Chrysler to display at Fiat booth in Frankfurt originally appeared on Autoblog on Thu, 27 Aug 2009 08:30:00 EST. Please see our terms for use of feeds.

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REPORT: Alfa Romeo to lead American charge, Fiat 500 to go it alone

Noah Joseph — Fri, 26 Jun 2009 09:55:00 EST

Filed under: Chrysler, Alfa Romeo, Fiat

Alfa Romeo has been toying with the idea of returning to America for years, but now that Fiat CEO Sergio Marchionne is working from Auburn Hills, the time seems more ripe than ever as details emerge on Fiat/Chrysler's strategy vis-a-vis the North American market. While Marchionne implements management restructuring designed to reduce Chrysler's executive hierarchy and separate its divisions into more independent units, a product strategy is rapidly being put into place to make up for lost time during the bankruptcy procedure and get the company back on track.

With Maserati and Ferrari already present in North America and Lancia offering little to entice North American buyers, the Italian side of the partnership looks poised to enter the market with Fiat and Alfa Romeo models. However, while future Chryslers, Dodges and Jeeps will share underpinnings with their Fiat and Alfa Romeo counterparts - including an Alfa GTX to be based on the new Jeep Grand Cherokee - the Fiat brand itself will have a very limited presence in the North American market, offering only the 500 retro hatchback as a stand-alone model... not unlike BMW's Mini brand. Other Fiat models will carry Chrysler, Dodge and Jeep badges, while Alfa Romeo will take the higher profile on this side of the Atlantic, offering cars under the stoic marque to compete with other European luxury brands. As the Freep points out, Chrysler and Alfa had collaborated in the early '90s to bring Alfas Stateside with limited success, but Marchionne evidently thinks it'll have better luck this time around.

[Source: Detroit Free Press]

REPORT: Alfa Romeo to lead American charge, Fiat 500 to go it alone originally appeared on Autoblog on Fri, 26 Jun 2009 09:55:00 EST. Please see our terms for use of feeds.

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Chrysler pondering whether Sebring/Avenger replacements should go rear-wheel drive?

Dan Roth — Mon, 22 Jun 2009 11:00:00 EST

Filed under: Concept Cars, Sedan, Chrysler, Alfa Romeo, Fiat

Chrysler 200C concept car - click above for high-res image gallery

Setting the Challenger and 300 aside, what Chrysler needs now most of all is a C/D segment car that moves more metal than the pitiful performance of its current offerings. According to Automotive News, Chrysler shifted just 133,626 of its Sebring and Dodge Avenger platform-mates, a number that pales in comparison to class leaders like the Toyota Camry (436,617) and Honda Accord (372,789). The constant clamor to put the 200C concept into production in some form has got Chrysler looking for ways to make that car a reality, but finding a platform that will play on Main Street is a thorny little chestnut.

Replacing the universally jeered Sebring and Dodge Avenger (and their Mitsubishi platform) by going rear-wheel drive is a possibility. The 200C show car sat on a shortened version of the LX platform, in theory inviting both rear-wheel and all-wheel drive configurations. Fiat's D-Evo platform, debuting with the replacement for Alfa Romeo's 159, is another possibility, but there are concerns it may not be flexible enough to grow to the size the 200C needs. Fiat's bid for General Motors' Opel unit brought with it speculation that the 200C could snag the Epsilon platform, but that's since fallen off the radar.

While a rear-drive Chrysler midsizer sporting the sharp exterior and interior design of the 200C and priced like a Fusion would be something distinctive, the sales case for such a departure from the class-norm of FWD remains yet to be convincingly argued. Tuned properly, such a vehicle could give much higher-zoot iron a run for its money, and performance enthusiasts likely would embrace such a model; though they may not actually buy one. Chrysler needs to close sales, not set internet chatrooms abuzz, so regardless of how it comes to market, the 200C must be more fully realized than the current Chrysler midsizers.

Gallery: Chrysler 200C Concept

[Source: Automotive News (subs req)]

Chrysler pondering whether Sebring/Avenger replacements should go rear-wheel drive? originally appeared on Autoblog on Mon, 22 Jun 2009 11:00:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #131

Dan Roth — Tue, 09 Jun 2009 16:40:00 EST

Filed under: Podcasts, Etc., Government/Legal, Chrysler, GM, GMC, Ferrari, Fiat, Opinion/Editorial

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Episode #131 of the Autoblog Podcast is here. Chris, Sam, and Dan sat down and kicked the ball around. The most important news when we rolled our recorders was the Supreme Court's staying of Chrysler's deal with Fiat. Staying with Fiat, we also kibbitzed about the nameplate's showing in a new J.D. Power satisfaction study. Ferrari's green efforts are next in our bombsights before we touch on GM's winding down of its medium-duty trucks and the call from some politicos to boycott General Motors. Wrapping up, we cover a few questions and call it a night. Thanks for listening, and as always, shoot us a note at Podcast at Autoblog dot com.

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Continue reading Autoblog Podcast #131

Autoblog Podcast #131 originally appeared on Autoblog on Tue, 09 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #130

Dan Roth — Tue, 02 Jun 2009 16:45:00 EST

Filed under: Podcasts, Government/Legal, Chrysler, Ford, GM, Volvo, Earnings/Financials, Opel, Fiat, Opinion/Editorial

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Episode #130 of the Autoblog Podcast sees Chris, Sam, and Dan kibbitzing over the obvious news, but it's not an All-GM-Bankruptcy show. Starting with General Motors (after all, it's a huge event) we move on to Magna's deal with Opel (and GM, coincidentally). Volvo's clever implementation of a diesel hybrid in its wagon comes next before talk turns to Fiat-based Chryslers. It all wraps up at about an hour and a half after we polish off some of your questions. Thanks for listening, hit us up at Podcast at autoblog dot com with questions/comments/praise/scorn.

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Continue reading Autoblog Podcast #130

Autoblog Podcast #130 originally appeared on Autoblog on Tue, 02 Jun 2009 16:45:00 EST. Please see our terms for use of feeds.

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Officially, Official: Bankruptcy judge approves sale of Chrysler assets

Sam Abuelsamid — Mon, 01 Jun 2009 08:55:00 EST

Filed under: Government/Legal, Chrysler, Earnings/Financials

Late Sunday night, U.S. bankruptcy Judge Arthur Gonzalez approved the sale of Chrysler's remaining good assets to a group that includes the UAW VEBA health care trust, Fiat, and the U.S. and Canadian governments. The union will get a 68% stake, Fiat gets 20% and the governments split the rest. Gonzalez over-ruled virtually all objections to the deal on the grounds that the best chance of preserving any value in the assets was to move ahead with the sale. The only other viable alternative was liquidation, which would likely only bring a small fraction of the potential value in keeping the company alive.

Gonzalez cited the public interest as one of the reasons to move ahead with the sale. Because the billions of dollars in loans from the two governments, keeping the company alive it was decided that this course of action was the best opportunity for some repayment. Senior lenders will receive $2 billion, or about .29 cents on the dollar of the debt currently owed by Chrysler. Some 90 percent of the company's senior lenders were reportedly in support of the deal.

The "new" Chrysler will henceforth be known as Chrysler Group LLC.

[Source: Reuters]

Officially, Official: Bankruptcy judge approves sale of Chrysler assets originally appeared on Autoblog on Mon, 01 Jun 2009 08:55:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #127

Dan Roth — Thu, 14 May 2009 16:15:00 EST

Filed under: Podcasts, Etc., Government/Legal, Earnings/Financials, Opinion/Editorial

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Chris, Sam, and Dan kick it for Episode #127 of the Autoblog Podcast. Of course, there are the usual tangents around the topics, which this week include BMW's new Z4, a poll about Hybrids, Chrysler's bankruptcy, Toyota's losses, Opel's new Astra and the possibility of General Motors building US-market cars in China, and we make time for some questions at the end. It's an hour show this week, and a chock-full one at that. Next week, it's a reader-question edition, so get your emails rolling in to podcast at autoblog dot com and we'll see you next week! Thanks for listening!

Follow the jump to subscribe to the Autoblog Podcast in iTunes, add the show to your RSS aggregator... or listen to it right now!

Continue reading Autoblog Podcast #127

Autoblog Podcast #127 originally appeared on Autoblog on Thu, 14 May 2009 16:15:00 EST. Please see our terms for use of feeds.

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BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO

Noah Joseph — Thu, 07 May 2009 11:15:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, Fiat

After weeks of speculation, Fiat confirmed today that its CEO, Sergio Marchionne, will assume the same role with Chrysler once it exits bankruptcy. According to statements from the Obama administration, Chrysler could emerge from "surgical bankruptcy" in as little as 30 to 60 days, after which Chrysler's current chief executive Bob Nardelli will step down and Marchionne will step in.

A dual Canadian and Italian citizen, the Ontario-educated Marchionne is credited with turning the Fiat Group around from a money-losing enterprise into one of the largest and most successful automakers in the industry. After taking over the helm at Fiat five years ago, Marchionne said he would need to double its sales to 5.5 million units annually in order to make the company financially viable. His vision for separating Fiat, Lancia and Alfa Romeo out of their parent company and into a new auto group together with Chrysler (and potentially with GM's European and Latin American assets) would make it the second-largest automaker in the world, with 6 million cars produced annually. The bulk of the debts, however, would remain with the shells of their former organizations, leaving the new one unencumbered and free to regroup. There's no further news at this point as to when Chrysler will emerge from its Chapter 11 proceedings, allowing Marchionne to step in, or how the reported Treasury Dept. regulations will affect Marchionne's salary, but we can expect to hear plenty more on this highly-rated executive and his vision for reshaping the auto industry in the very near future.

[Source: The Detroit News | Image: Giuseppe Cacace/Getty]

BREAKING: Marchionne confirmed as post-bankruptcy Chrysler CEO originally appeared on Autoblog on Thu, 07 May 2009 11:15:00 EST. Please see our terms for use of feeds.

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The Chrysler-Kia alliance that never was

Dan Roth — Thu, 07 May 2009 10:59:00 EST

Filed under: Etc., Chrysler, GM, Hyundai, Kia, Fiat, Rumormill

Chrysler has been trying to shack up with another automaker for quite a while now, and the trail of relationships that never got off the ground reads like a middle school diary. While Chrysler's deal with Fiat has all but gotten 500s rolling out of plants on this continent, a deal with Kia had been worked pretty hard as a way to source a car, resulting in a term sheet for the relationship. Kia ultimately put the kibosh on the deal, citing manufacturing issues, a move that sent Tom LaSorda around the globe trying to play matchmaker for his employer.

A deal with Nissan to swap trucks for small cars was all but official, but fell apart after the financial climate worsened further, so it seems there will be no Ram-based Titan after all. Another joint deal was investigated, this time with GAZ and Magna, to build a car in Russia using excess GAZ capacity. Serious talks with General Motors even went on under the "Project America" moniker back in October. For all the efforts to get the Auburn Hills automaker betrothed, it finally seems like things are moving along with an assist from Fiat, and we should start to see the nuts and bolts of the deal come together now.

[Source: WSJ]

The Chrysler-Kia alliance that never was originally appeared on Autoblog on Thu, 07 May 2009 10:59:00 EST. Please see our terms for use of feeds.

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