Autoblog

Fiat pondering swallowing rest of Chrysler, US IPO

Jonathon Ramsey — Wed, 24 Apr 2013 16:01:00 EST

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

At the moment, Fiat is in court with the United Auto Workers, waiting for the justice system to provide some guidance on a fair price for 41.5-percent of Chrysler it doesn't own. Fiat owns 58.5 percent of the company and wishes to buy the remainder, which is owned by the union's VEBA retiree trust, but the Italian company and the UAW are on different sides of the galaxy when it comes to assigning a fair price to that outstanding stake.

Naturally, Fiat CEO Sergio Marchionne is considering his options. A new report in the The Wall Street Journal says one of the scenarios being considered now is - depending on the outcome of the court case - to purchase the 41.5-percent stake and then issue an IPO to recoup some of the cost. About two months ago, Marchionne put the odds of an IPO for a wholly combined Fiat/Chrysler at 50 percent. Even with the WSJ report, it's not clear if those odds have changed.

The current company structure leaves a lot of options as to how a potential IPO could be issued, but it's said that Marchionne is against it, preferring "to be one company," under Fiat, indivisible. If Fiat is finally able to purchase all of the Pentastar, it would get access to Chrysler's war chest, pegged at $11.9 billion at the end of Q3 in 2012, and that money can't come soon enough for a brand taking a beating in Europe and delaying product over cash concerns.

Fiat pondering swallowing rest of Chrysler, US IPO originally appeared on Autoblog on Wed, 24 Apr 2013 16:01:00 EST. Please see our terms for use of feeds.

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UAW urging Chrysler to sell shares to investors

Zach Bowman — Thu, 10 Jan 2013 13:30:00 EST

Filed under: Chrysler, Earnings/Financials, UAW/Unions, Fiat

The United Auto Workers union is pushing Chrysler to sell 16.6 percent of its stock to investors in an attempt to establish the value of the shares. The UAW is currently locked in a lawsuit with Chrysler parent company Fiat over how much the Italian automaker should pay to buy shares from the trust fund. Last year, Fiat told the trust it intended to exercise its right to purchase 3.3 percent of the union's shares at issue. But the union contended the 54,154 shares were worth closer to $381 million instead of the $155 million Fiat offered.

Currently, the UAW owns 41.5 percent of Chrysler while Fiat holds 58.5 percent of the company. Currently, it's unclear whether the UAW could force Chrysler to put the shares on the open market. Doing so would be the first step toward a much-anticipated initial public offering. Chrysler has said it will comply with its shareholders agreement, and Fiat has echoed that tune. According to The Detroit Free Press, the UAW Retiree Medical Benefits Trust has declined to comment on the situation.

UAW urging Chrysler to sell shares to investors originally appeared on Autoblog on Thu, 10 Jan 2013 13:30:00 EST. Please see our terms for use of feeds.

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Yellow-Flagged: Formula One's French Grand Prix and IPO potentially on hold

Jonathon Ramsey — Tue, 15 May 2012 13:30:00 EST

Filed under: Motorsports

It is exceptionally rare for Bernie Ecclestone to be shown the yellow flag when it comes to his Formula One business dealings, but that's what happened with two of his projects. A month ago, Ecclestone agreed to terms with France's sports minister David Douillet to reinstate the French Grand Prix at the Paul Ricard circuit (which Ecclestone happens to own). The contract hadn't been signed while minor details were settled, but the plan was that the French GP would alternate with the Belgian GP starting in 2013.

However, with the defeat of French president Nicolas Sarkozy and the election of François Hollande, new reports suggest that everything from the previous regime will come under review. And it seems unlikely that Hollande, who was voted in by taxpayers who wanted more for their money and their economic pain, will agree to have the state subsidize the race. Said the president-elect, "I do not think the French state should be responsible for any financial outlay. There are enough issues to consider without spending tens of millions of euros on a grand prix."

And across the world in Singapore, the GP is safe but the planned F1 Initial Public Offering in the nation-state now has a question mark after it. The squalls in the market that have depressed stock markets everywhere have IPO insiders cautious on the endeavor. Word is that they'll see how the imminent Facebook IPO fares and how the market responds before making a decision. There is also the matter of the Mercedes-Benz not having signed the Concorde Agreement, and Daimler says it needs to get that settled before F1 can go public. According to Reuters, if the offering isn't conducted by June then it - and the estimated $2 billion it is expected to raise - might have to wait until next year.

Yellow-Flagged: Formula One's French Grand Prix and IPO potentially on hold originally appeared on Autoblog on Tue, 15 May 2012 13:30:00 EST. Please see our terms for use of feeds.

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CVC gearing up to sell 20% of Formula One with $2B Singapore IPO

Noah Joseph — Tue, 10 Apr 2012 18:31:00 EST

Filed under: Motorsports, Earnings/Financials

Formula One has many homes: the Formula One Management company that controls its commercial aspects is based in London, the FIA that governs its sporting aspects is based in Paris, and you'd certainly have a point to make if you asserted its spiritual home was in Monaco. But none of these places are where its stakeholders are looking to float its Initial Public Offering. No, that place is Singapore.

CVC Capital Partners - the investment group that owns the majority of Formula One - has been toying with floating an IPO on the Singapore Stock Exchange for several weeks now, and according to reports is gearing up for the move. Both Bloomberg and Reuters are expecting that the stock issue would constitute about 20% of the business, likely to come mostly out of CVC's end which amounts to 63.4 percent, and not that of its manager Bernie Ecclestone whose stake comes to 5.3%. (Lehman Brothers holds another 15.3%, Ecclestone's ex-wife Slavica owns 8.5%, with the remaining 7.5% divided up between various minority investors.)

With the overall value of the business estimated at $10 billion, the 20% tipped to be offered on the open market is expected to bring in $2 billion in capital for its sellers, however CVC could opt for the minimum 15% to raise $15 billion. So... why Singapore? The vital Asian business capital has apparently been chosen to help F1 drum up support in the Far East, a region where grands prix are held in Malaysia, China, Japan, South Korea and Singapore itself.

CVC gearing up to sell 20% of Formula One with $2B Singapore IPO originally appeared on Autoblog on Tue, 10 Apr 2012 18:31:00 EST. Please see our terms for use of feeds.

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Ecclestone estimates Formula One IPO at $10B, hires Goldman Sachs to investigate

Zach Bowman — Tue, 20 Mar 2012 18:50:00 EST

Filed under: Motorsports, Europe, Earnings/Financials, Celebrities

Formula One may be headed toward an initial public offering worth a staggering $10 billion, according to Bloomberg. CVC Capital Partners Ltd., the majority owner of the Formula One Group, has hired Goldman Sachs Group to look into the motorsports empire's value. The deal would involve selling a portion of CVC's 63.4 percent stake in F1, likely with an IPO in Singapore. The news comes courtesy of an unnamed source familiar with the discussions.

Meanwhile, F1 Supremo Bernie Ecclestone has said that he will remain in his position regardless of CVC's course of action. He is not expected to sell his 5.3-percent stake in the Formula One Group. The CEO is reportedly in talks with current F1 teams over contracts that expire this year, offering big names like Ferrari and Red Bull up to $45 million to stay on. Currently, it's unclear whether any teams have agreed to the new terms, but Ecclestone says those talks won't need to be concluded for the IPO to progress.

Ecclestone estimates Formula One IPO at $10B, hires Goldman Sachs to investigate originally appeared on Autoblog on Tue, 20 Mar 2012 18:50:00 EST. Please see our terms for use of feeds.

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Montezemolo shoots down Ferrari IPO rumors

Zach Bowman — Tue, 20 Mar 2012 11:31:00 EST

Filed under: Performance, Europe, Earnings/Financials, Ferrari, Luxury

Put your money away, people. Ferrari Chairman Luca di Montezemolo has told a German newspaper his company will not be going public anytime soon, saying, "No, there is nothing on the agenda," according to Automotive News Europe. According to the executive, Ferrari parent company Fiat doesn't need the cash that would be generated by an IPO, and that while he can't know what will happen in the far-off future, right now the automaker will continue with business as usual.

Rumor of a Ferrari IPO first hit the internet back in September after sources told Reuters that Fiat had been approached by multiple investment banks offering to list the exotic Italian supercar manufacturer on the Hong Kong stock exchange.

This isn't the first time word of a Ferrari IPO has hit the web. Long before Fiat bought Chrysler, rumors whipped around over the possibility of an outright sale or a public offering to drum up cash. Then, a little over a year ago, Montezemolo outright denied the plans all together after the dust settled.

Montezemolo shoots down Ferrari IPO rumors originally appeared on Autoblog on Tue, 20 Mar 2012 11:31:00 EST. Please see our terms for use of feeds.

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Delphi planning $550M IPO

Chris Shunk — Mon, 07 Nov 2011 08:32:00 EST

Filed under: Plants/Manufacturing, Earnings/Financials

It took Delphi four years to exit bankruptcy, but after a major restructuring and staggering losses, the parts maker is once again ready to sell shares to the public. The Detroit News reports that Delphi will offer a $550-million stock offering later this month. The move comes after Delphi announced in May of 2011 that it would seek an Initial Public Offering, though the $550 million sum is nearly half of the originally announced $1 billion IPO.

Though Delphi suffered massive losses over the past decade, the past two years have been very solid. The parts maker made $703 million in 2010, and through nine months of 2011 Delphi has earned $911 million. Investors will likely like the fact that the $911M in profits came on only $12.1 billion in sales. That's a very healthy margin of 16.3 percent, and with auto sales seemingly only going up, future profits could look even more impressive.

Delphi's labor costs are another reason for the vastly improved profits margins. Delphi got rid of 45,000 U.S. employees during bankruptcy, and now 90 percent of the auto supplier's workforce is located in low-wage countries. That's not a good sign for U.S. manufacturing jobs, but it's likely exactly what investors want to hear.

Delphi planning $550M IPO originally appeared on Autoblog on Mon, 07 Nov 2011 08:32:00 EST. Please see our terms for use of feeds.

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Montezemolo denies Ferrari IPO

Noah Joseph — Fri, 22 Jul 2011 10:29:00 EST

Filed under: Ferrari

Fiat has gone from a local automaker to a major industry powerhouse in a relatively short span of time, increasing its own market stake while taking over Chrysler to expand its global reach. But something's gotta give, figured the industry analysts, leading to speculation that one of its most valuable properties could be sold - at least in part - to raise capital for the rest.

Following much speculation that Fiat could begin selling off shares in Ferrari, the latter's powerful chairman Luca di Montezemolo has reportedly flat-out denied any possibility of an initial public offering on the open stock market.

Now, that's not to say that Fiat couldn't opt to sell all or part of Ferrari via other channels - say, privately to another automaker or group of investors. Montezemolo has been known, after all, to issue somewhat misleading statements, such as the repeated denial of an upcoming entry-level model right up until the introduction of the California. So we wouldn't quite put the issue to rest just yet, but we won't be calling our stock brokers with a standing order, either.

Montezemolo denies Ferrari IPO originally appeared on Autoblog on Fri, 22 Jul 2011 10:29:00 EST. Please see our terms for use of feeds.

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Delphi files for $100 million IPO

Jeff Glucker — Fri, 27 May 2011 09:59:00 EST

Filed under: Etc., Earnings/Financials

2009 was a rough year for most companies in the automotive industry. Delphi, a major automotive parts supplier, saw things a little differently. After entering bankruptcy in 2005, Delphi was able to climb out of its Chapter 11 hole in 2009. Now, two years later, Delphi is heading to Wall Street, and it looks like the parts supplier is about to make it rain.

Delphi has filled out an S-1 form and handed it over to the SEC. An Initial Public Offering will soon follow, and Delphi is looking to bring in $100 million. Delphi believes that number will fluctuate as analysts evaluate the company and the strength of its balance sheet.

If you've been following the recent rash of automotive IPOs, then you might think $100 million sounds low. Analysts agree with you.

The $100 million figure is merely a placeholder value, so that filing fees can be calculated. It's quite possible that millions will be turning into billions. Recent movement in the automotive industry has investors spending serious amounts of money. General Motors hauled in $23.1 billion during its IPO at the end of 2010. Delphi has cleaned up billions of dollars in debt while slimming down its overhead.

We'll be paying close attention when "DLPH" starts scrolling across the ticker.

Delphi files for $100 million IPO originally appeared on Autoblog on Fri, 27 May 2011 09:59:00 EST. Please see our terms for use of feeds.

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Report: Marchionne admits Fiat may sell off Ferrari ahead of merger

Jeff Glucker — Tue, 16 Nov 2010 09:00:00 EST

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

Sergio Marchonne, CEO of Fiat and the Chrysler Group, has stated that he is looking to raise some cash ahead of the upcoming Fiat/Chrysler merger. One possible way to do this? Reduce its 90 percent ownership stake in Ferrari through an IPO. Fiat estimates that Ferrari is currently worth $3.3 billion, and offering stock in the Italian sports car manufacturer could generate some serious coin.

Earlier in 2010, Marchionne had stated a Ferrari IPO was possible but that he also wanted the automaker to revert to its traditional 90 percent ownership stake. After a five percent stake purchase from Mubadala Development company, it got the 90 percent ownership stake it was looking for yet talk of the initial public offering seems to contradict Marchionne's plans.

If the IPO does happen, we have a good idea who will be first in line with a briefcase full of hundreds.

[Source: Automotive News - sub. req. | Image: Massimo Pinca/AP]

Report: Marchionne admits Fiat may sell off Ferrari ahead of merger originally appeared on Autoblog on Tue, 16 Nov 2010 09:00:00 EST. Please see our terms for use of feeds.

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Report: GM to offer stock to employees, retirees and dealers

Jeff Glucker — Tue, 12 Oct 2010 15:58:00 EST

Filed under: GM, Earnings/Financials

General Motors is getting ready for its Initial Public Offering, which is expected to occur later this year. Ahead of that, GM has announced that it will offer nearly 600,000 employees (current and retired) and dealers the opportunity to purchase stock at the opening IPO price.

According to The Detroit News, the minimum required investment will be $1,000, and to qualify for this program, interested parties must respond by the end of this month. Once the IPO has been announced, potential buyers will then have four business days to purchase stock at the opening price. The program is being administered by Morgan Stanley. GM has not specified maximum and minimum share limits for this program.

[Source: The Detroit News]

Report: GM to offer stock to employees, retirees and dealers originally appeared on Autoblog on Tue, 12 Oct 2010 15:58:00 EST. Please see our terms for use of feeds.

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Report: Marchionne predicts Chrysler IPO in second half of 2011

Jonathon Ramsey — Thu, 16 Sep 2010 15:58:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

The timeline for Chrysler's IPO is gradually coming into focus. Four months ago Fiat CEO Sergio Marchionne said he expected to Chrysler's offering to happen "probably" in 2011. Now he's narrowed that down to becoming "a second-part-of-the-year event."

The timing makes all kinds of sense: not only does Marchionne not expect a profit this year, the results of Fiat's integration with Chrysler won't begin to bear fruit until the middle of next year, after the 500 has gone on sale and had a few months to find its feet. By then, the company might also have some better news to report about 2011's finances. Frankly, we wouldn't be surprised if it didn't happen until early 2012. And speaking of the 500, when it starts rolling in, Fiat will be able to claim another five percent of Chrysler, taking its stake to 35 percent.

[Source: Automotive News - Sub. Req. | Image: Massimo Pinca/Getty]

Report: Marchionne predicts Chrysler IPO in second half of 2011 originally appeared on Autoblog on Thu, 16 Sep 2010 15:58:00 EST. Please see our terms for use of feeds.

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BREAKING: General Motors files for IPO

Jeremy Korzeniewski — Wed, 18 Aug 2010 16:15:00 EST

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

General Motors, the largest automaker based in the United States, has officially filed paperwork with the Securities and Exchange Commission for an Initial Public Offering.

By offering preferred stock along with its IPO, GM is looking to allow the U.S. Treasury (and by extension, American taxpayers) the chance to reduce its stake in the automaker as much as possible. Unlike common stock, preferred stock carries both debt and equity, is rated by the world's credit rating companies and typically has priority over common stock in the event that the company goes into bankruptcy.

According to Bloomberg, the U.S. Treasury intends to sell a fifth of its 304 million common shares as part of the IPO, which will make the government a minority shareholder.

If GM raises the expected $16 billion in its IPO, it will rank as the second-largest in U.S. history behind Visa's $19.7 billion in 2008. The offering will be led by Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. Official GM fine print is available after the jump.

[Sources: General Motors, Bloomberg | Image: Associated Press/Paul Sancya]

Continue reading BREAKING: General Motors files for IPO

BREAKING: General Motors files for IPO originally appeared on Autoblog on Wed, 18 Aug 2010 16:15:00 EST. Please see our terms for use of feeds.

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Report: Whitacre says GM anticipates offering entire company in IPO

Sam Abuelsamid — Fri, 06 Aug 2010 16:59:00 EST

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

At this point, the only thing we know for sure about the General Motors initial public offering is that it will happen... eventually. With the United States government holding a 61-percent equity stake in the automaker, the political pressure is huge to make a stock sale occur sooner rather than later.

However, until GM CEO Ed Whitacre spoke at the Management Briefing Seminars in Traverse City, MI this week, the presumption was that only about one-third of the company's stock would be offered up in the IPO. Whitacre, however, seems to be indicating that the entire company would be offered up in a single sale. The rationale for doing the stock sale in stages would be to maximize the return on the government's investment. A single sale might result in a lower per-share price and lower overall return. By selling a smaller stake and then timing further sales with a hopefully rising stock price, the return could be improved.

Following Whitacre's comments, other GM representatives told CNBC that the final decision would be made by the current shareholders, the U.S. and Canadian governments, the UAW health care trust and former bondholders.

[Source: CNBC]

Report: Whitacre says GM anticipates offering entire company in IPO originally appeared on Autoblog on Fri, 06 Aug 2010 16:59:00 EST. Please see our terms for use of feeds.

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General Motors asks IPO banks to take cars instead of fees

Sam Abuelsamid — Mon, 19 Jul 2010 07:57:00 EST

Filed under: GM, Earnings/Financials

At some point in the not too distant future, General Motors will return to being a publicly traded company, with the timing likely to be based in part on both business and politics. In May, the automaker began soliciting investment banks to handle the sale of its stock. With what will likely be one of the largest public stock offerings of all time, the banks are undoubtedly salivating at the potential fees they will collect in the process.

With the GM sale being potentially huge and IPOs still relatively scarce during the economic downturn, the automaker feels it has some leverage with the banks. As a result, it's asking the money-changers to be creative about how they'll market the sale and be compensated. One potential option is for banks to use some of the fees to purchase GM vehicles or subsidize purchases by employees. This will both lower the cost to GM and the U.S. Treasury, while improving GM's revenues. One particular benefit would be getting wealthy bankers to take a serious look at GM vehicles, possibly helping the automaker get a better demographic. Or something...

[Source: Bloomberg Businessweek]

General Motors asks IPO banks to take cars instead of fees originally appeared on Autoblog on Mon, 19 Jul 2010 07:57:00 EST. Please see our terms for use of feeds.

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Report: GM pushes IPO filing back to August due to financial issues

Jonathon Ramsey — Mon, 05 Jul 2010 11:00:00 EST

Filed under: Government/Legal, GM, Earnings/Financials, Rumormill

General Motors - or perhaps it was all those sources 'in the know' - had their drums beating about a possible IPO filing as early as last week. Here we are a week later and there's still no firm sign of a stock offering. Reuters, quoting a "source familiar with the situation," now reports that the filing has been pushed back to August due to some financial loose ends that GM would like to address before setting its shares free.

The biggest loose end appears to be CEO Ed Whitacre's desire for a $5 billion line of credit. Four banks have pledged $2 billion so far, with the balance expected to be wrapped up in a fortnight. The funds could pay for expansion plans and, more importantly, serve as a buffer in case the recession does the double-dip that's being increasingly discussed in economic circles. The Reuters report didn't mention anything about Whitacre's stated aim of restarting a captive finance arm before an IPO.

A $15 to $20 billion offering is still the range being quoted for GM's IPO. It is speculated that GM is so committed to getting things done this year that the company will lower the valuation rather than postpone the proceedings. There are still so many what-ifs and concerned parties involved, however, that it's looking more and more likely that we won't know how well GM's IPO will really do until we know how it actually did.

[Source: Reuters]

Report: GM pushes IPO filing back to August due to financial issues originally appeared on Autoblog on Mon, 05 Jul 2010 11:00:00 EST. Please see our terms for use of feeds.

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Report: General Motors may file for IPO as soon as next week

Sam Abuelsamid — Wed, 23 Jun 2010 11:31:00 EST

Filed under: GM, Earnings/Financials

It looks like General Motors could file its first paperwork for an initial public stock offering as soon as next week. The IPO registration is the first step in the process of getting approval from the Securities and Exchange Commission to become a publicly traded company again. A stock sale could come as soon as November and probably no later than early 2011.

At this point it appears that most of the shares to be sold will come from the block held by the United States Treasury, which accounts for 60.8 percent of the automaker. The Treasury would like to start unloading its stake as soon as possible and preferably before this year's election. Roughly one third of the government's holdings are expected to be sold in what may well be the biggest IPO of all time. Depending on the IPO price, the sale could bring in anywhere from $10-20 billion for what would be about 20 percent of the company. At the time of its bankruptcy last year, GM's market capitalization was barely $700 million.

[Source: The Detroit News | Image: Stan Honda/Getty]

Report: General Motors may file for IPO as soon as next week originally appeared on Autoblog on Wed, 23 Jun 2010 11:31:00 EST. Please see our terms for use of feeds.

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Report: Top GM execs awarded millions in stock ahead of IPO

Jeremy Korzeniewski — Tue, 08 Jun 2010 18:28:00 EST

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

It pays to be an executive for General Motors. Actually, scratch that... it will soon pay to be an executive with General Motors, assuming that the automaker's upcoming Initial Public Offering takes place according to plan. According to our friends at TheDetroitBureau.com, a dozen top officials at the company could be looking at a payday totaling as much as $13 million or more, depending on the value of GM stock after the IPO.

According to filings submitted to the Securities and Exchange Commission, Chairman and CEO Ed Whitacre, Vice Chairman Tom Stephens, Chief Financial Officer Chris Liddell, Vice Chairman Chris Girsky and North American President Mark Reuss are all slated to get major stock deals.

After GM received its $50 billion bailout from the U.S. government, Kenneth Feinberg, Treasury's special master on pay, set up pay restrictions for officials at the automaker that capped salaries at specified levels, oftentimes to no more than $500,000 per year. Naturally, the stock deals awarded to the aforementioned executives after the company's expected IPO should more than help make up for any perceived monetary deficiencies.

[Source: TheDetroitBureau.com]

Report: Top GM execs awarded millions in stock ahead of IPO originally appeared on Autoblog on Tue, 08 Jun 2010 18:28:00 EST. Please see our terms for use of feeds.

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Report: U.S. hires lead bank for General Motors IPO

Sam Abuelsamid — Mon, 31 May 2010 11:01:00 EST

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

The government of the United States may be actively avoiding any direct involvement in the day-to-day management of General Motors, but that doesn't mean it won't have a say when the time comes for the automaker to go public again. According to The Detroit News, the U.S. Department of the Treasury has hired investment bank Lazard Frères & Co. to provide it with advice on the initial public offering process.

While both General Motors and the Treasury would obviously both like the latter to unload the majority stake it owns in the automaker as soon as possible, that process needs to be done carefully. Political and public perception considerations point to an early IPO, but that may not be the smartest thing to do from a business perspective. Selling before its clear that GM's recovery is well underway could lead to getting too low a share price. The bank will reportedly also look at other options for disposing of the 61 percent shareholding.

According to the report, Lazard Frères & Co. will get paid $500,000 a month for the first year and $250,000 per month after that if the sale hasn't yet been completed. Estimates from various sources are that the treasury will face losses of $25-30 billion on the bailouts of GM, Chrysler and GMAC.

[Source: The Detroit News | Image: Stan Honda/Getty]

Report: U.S. hires lead bank for General Motors IPO originally appeared on Autoblog on Mon, 31 May 2010 11:01:00 EST. Please see our terms for use of feeds.

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Marchionne says "Probably 2011" on Chrysler IPO, wants GM to go first

Jonathon Ramsey — Sun, 23 May 2010 09:32:00 EST

Filed under: Chrysler, Earnings/Financials, Fiat

Everyone is watching General Motors CEO Ed Whitacre, Jr. to see what he'll be able to pull of this year with respect to his plans, including a possible IPO. Count Chrysler CEO Sergio Marchionne among the interested. While the Fiat 500's introduction will likely result in Fiat upping its Chrysler stake to 25 percent, when it comes to a Chrysler IPO, Marchionne is thinking 2011, and he wants GM to go first, according to Automotive News.

Marchionne feels there's enough investor interest for both GM and Chrylser IPOs, but said, "Let him go, he's been itching to go," in reference to Whitacre wanting a GM IPO as soon as this year. Chrysler has good reason to wait. It's arguably further behind than GM in its turnaround, and whereas GM has the Volt to make a potential shareholder splash in 2010, Chrysler's product fireworks won't really start booming until next year.

For now, Chrysler milestones are being reached ahead of schedule and things in Auburn Hills are going well enough to get Marchionne to say, "May is "turning out to be a good month." A Chrysler IPO is obviously desired, but based on Marchionne's latest statements, it remains in the distance.

[Source: Automotive News - sub req'd]

Marchionne says "Probably 2011" on Chrysler IPO, wants GM to go first originally appeared on Autoblog on Sun, 23 May 2010 09:32:00 EST. Please see our terms for use of feeds.

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