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Does Alfa Romeo's US return hinge on Chrysler-Fiat deal?

A Bloomberg report from last month said that if Chrysler ends up offering an IPO, it could jeopardize the entire alliance between the Auburn Hills-based automaker and Fiat, but the outlet now says that an IPO could crush the dreams of hopeful Alfa Romeo 4C owners in the US. As the latest Bloomberg report indicates, publically traded shares would prevent Fiat from gaining full control of Chrysler. This would leave Fiat without the full access to Chrysler's cash flow, technology and manufacturing necessary to mass produce the new Alfa Romeo sport coupe inexpensively enough to export to the US.

As CEO of both Chrysler and Fiat, this puts Sergio Marchionne is an awkward position as he tries to purchase the remaining shares from the United Auto Workers union. He is tasked with getting the most money possible for Chrysler shareholders while attempting to spend the least money possible on Fiat's behalf. With Marchionne and the UAW still far apart on the value of the remaining 41.5 percent of Chrysler, the IPO would let the market decide the value of the stake while preventing a full merger between the two automakers and possibly leaving the 4C as a limited-production, Europe-only model.

The video report breaking down the IPO implications – and what it could mean for the 4C – is posted below.

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