Posts Tagged ‘chrysler ipo’

Chrysler IPO Not Happening until 2014

UAW trust's unwillingness to sell stake holds up offering.

by on Nov.25, 2013

Sergio Marchionne's planned IPO of Chrysler has been delayed until the first quarter of next year.

Investors looking to buy shares of new Chrysler stock as part of an IPO this year are going to have to rethink their investment strategy, as the company won’t be conducting that offering until next year.

Fiat – which owns 58.5 percent of Chrysler and assumed management of Chrysler in 2009 as part of the Auburn Hill automaker’s bankruptcy restructuring – said today that Chrysler’s board “has determined that it will not be practicable” to launch and complete the IPO before the end of the year. Chrysler will continue readying for a first-quarter 2014 launch of the IPO.

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“No assurance can be given as to whether or when an offering will be launched, as any launch will be subject to market conditions and other relevant considerations,” Fiat said. (more…)

Chrysler Wants IPO Ready by Year-End

“That horse left the barn,” says CEO Marchionne.

by on Oct.30, 2013

Fiat-Chrysler CEO Sergio Marchionne at an awards ceremony for suppliers.

After repeatedly delaying plans for a public stock offering and then suggesting Fiat might sever its ties with Chrysler if it went ahead with an IPO, the CEO of the two automakers now says he’s ready to put the process into overdrive.

“That horse left the barn,” Chief Executive Officer Sergio Marchionne told reporters and analysts during a news conference called to discuss the maker’s third-quarter earnings. “We are now bent on executing the IPO.  I hope that we can get it done by the end of this year.”

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Fiat initially acquired a 20% stake in the U.S. maker following Chrysler’s emergence from bankruptcy in mid-2009.  Through a series of steps it has increased its holdings to 58.5%, and Marchionne has repeatedly expressed Fiat’s interest in acquiring the remaining 41.5% held by a union retiree health care trust. But the two sides are battling over the worth of the United Auto Workers Union’s holdings in a Delaware court and the union is now pressing to let the market set the price with an IPO.


Chrysler Could Delay IPO Until Next Year

That’s if it isn’t canceled entirely.

by on Oct.03, 2013

Chrysler CEO Sergio Marchionne with former UAW President Bob King who ran the union when it received its stake in Chrysler.

Plans for an initial public offering of Chrysler stock could be delayed until next year, Sergio Marchionne, the CEO of both Chrysler and its Italian partner Fiat now says.

Speaking to reporters during a visit to his hometown in Italy, Marchionne cautioned that he doesn’t know if work on the planned IPO can be completed before the North American International Auto Show in Detroit next January.

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An IPO is “technically possible” in 2013 though it is increasingly likely to require waiting until 2014, according to the CEO. And that’s if one takes place at all.  Though Marchionne initially expressed interest in offering Chrysler shares after Fiat came to the rescue of the U.S. automaker in 2009, he has since shied away from that approach, indicating a preference for having Chrysler completely taken over by its European ally.


Chrysler IPO Reveals Strengths, Weaknesses – and Threat Fiat Could Abandon Alliance

“First ever” small crossover vehicle in development.

by on Sep.24, 2013

Fiat is warning it could walk away from its alliance with Chrysler - which has helped the US maker develop new products like the Jeep Cherokee.

Chrysler Group’s new IPO filing offers some deep insight into the turnaround at a company that has made some significant gains since emerging from Chapter 11 bankruptcy just four years ago but which still has a number of serious challenges to deal with as it continues to merge its operations with those of Italian-based automaker Fiat SpA.

Among other things, the filing itself reveals some of the plans in the works for new vehicles aimed at filling the numerous gaps in the Chrysler line-up, including a “first ever” small crossover-utility vehicle now under development.

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But the filing also raises the possibility that Fiat could abandon its alliance with the U.S. automaker, a relationship it launched in 2009 after Chrysler emerged from bankruptcy with the help of billions of dollars in federal aid.

“Fiat has informed us that it is reconsidering the benefits and costs of further expanding its relationship with us,” Chrysler warned in its S-1 filing with the U.S. Securities and Exchange Commission.


Chrysler Files for IPO

Stock offering follows failure to resolve dispute between Fiat and the UAW.

by on Sep.23, 2013

Fiat/Chrysler CEO Sergio Marchionne returns to the IPO alternative as his dispute with the UAW drags on.

Chrysler Group LLC is filing for an IPO, a step that Sergio Marchione, the CEO of both Chrysler and its Italian ally Fiat, had hoped to avoid.

The move is a step of last resort, the result of an ongoing dispute between Fiat, which owns a majority stake in the U.S. maker, and the union retirement health care trust that holds the remaining 41.5% stake in Chrysler. The two are currently battling in the Delaware courts over the value of the so-called VEBA’s holdings in the once-bankrupt American automaker.

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The specific price, as well as the number of shares to be auctioned off, have yet to be set.  JPMorgan will serve as the investment banker putting together the Initial Public Offering, which will see Chrysler traded publicly for the first time since it entered a “merger of equals” with Germany’s Daimler-Benz in 1998.


Jeep Cherokee Delay A Potential Setback for Chrysler

Maker again looking at IPO options.

by on Jul.30, 2013

Stuck in the mud? Chrysler desperately needs to get the new Jeep Cherokee into showrooms.

Chrysler has confirmed that it will delay the media preview for the new Jeep Cherokee while it works out the kinks with the new and desperately needed crossover-utility vehicle .

For the moment, the sales launch of the new Cherokee remains on schedule, but even if that doesn’t slip, as well, it is the latest chapter in a long-running automotive soap opera that goes by the name Chrysler.

Meanwhile, in an unexpected turn, the maker’s CEO let slip that a long-discussed initial public stock offering that it seemed to have abandoned a couple of years ago is apparently back in Chrysler’s plans.

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“We will introduce the vehicle to media and consumers as soon as that process is complete,” Chrysler said in a statement after advising journalists expecting to drive the next Jeep Cherokee next week that the program was being delayed by a month. “While the media drive timing has changed, production continues and the vehicles will be in showrooms in September,” Chrysler said.


Court May Decide Value of Chrysler Stock

Ruling next month could force a Chrysler IPO.

by on Feb.12, 2013

Fiat/Chrysler CEO Sergio Marchionne wants to wrap things up with UAW's VEBA as soon as possible.

With Fiat and the United Auto Workers Union unable to come to a compromise on the price of Chrysler stock, it’s going to be up to a judge to decide – a verdict that could be worth $100s of millions.

But the move could end an impasse that has prevented the Italian maker from moving ahead with its long-term goal of buying up more of its U.S. alliance partner. The court’s eventual ruling could also determine what happens if an when Chrysler stages a long-discussed initial public stock offering, or IPO.

Fiat is apparently reviewing financing options with banks to strengthen its balance sheet in preparation to buy out the minority stake in Chrysler Group LLC now held by the UAW’s  Voluntary Employee Benefit Trust or VEBA.

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Sergio Marchionne, Fiat and Chrysler chief executive officer, has held talks with banks to help pay for at least some of the 41.5% now controlled by the trust, which is responsible for the medical bills of Chrysler retirees. A final deal may take months, however, because Fiat and the trust disagree over the value of the shares.


UAW Wants Chrysler to Sell Stock on Open Market

The union may force Chrysler into an IPO.

by on Jan.10, 2013

Chrysler CEO Sergio Marchionne shown here during an appearance with UAW President Bob King.

The trust fund that pays medical bills for Chrysler’s unionized retirees wants the automaker to put a value on its share by selling a relatively small block of Chrysler stock.

While General Motors, which also went through bankruptcy and a subsequent U.S. government bailout, took itself public in November 2010, Chrysler has so far avoided a long-discussed IPO.

High and Dry!

The United Auto Workers Union Retiree Medical Benefits Trust – often referred to as a VEBA — now owns 41.5% of Chrysler shares. It is asking Chrysler to start the process for an initial public stock offering. The trust wants the company to sell 16.6% of the stock owned by the trust so it can put a value on the shares.


Chrysler Stock Offering on Indefinite Hold

“It’s not imminent,” says Marchionne.

by on Mar.07, 2012

The long-awaited Chrysler IPO isn't likely to happen anytime soon, cautions CEO Sergio Marchionne.

Analysts and potential investors who’ve been waiting for a Chrysler stock offering are going to have to keep waiting – possible for quite some time, the maker’s CEO is cautioning.

After Italian automaker Fiat effectively took control of the U.S. maker following its 2009 bankruptcy, Sergio Marchionne signaled he would stage an Initial Public Offering in relatively short order.  The IPO has since been pushed back repeatedly by Marchionne – CEO of both Fiat and Chrysler.

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In a Detroit radio interview, the Canadian-educated executive this week said he will not authorize the stock offering until the time is right.  In fact, he told an Italian newspaper last month, that Chrysler just might skip the IPO entirely.

“It’s not imminent,” Marchionne told Detroit talk station WJR when asked about when Chrysler might take itself public again.


Chrysler Claws Back into the Black

$212 mil profit reflects rising sales.

by on Oct.27, 2011

Third-quarter results were "totally in line" with Chrysler's plans, says CEO Sergio Marchionne.

Long struggling Chrysler is having a decidedly good week.  Just a day after getting word that its U.S. hourly workers have approved their new contract, the automaker is reporting it clawed back into the black during the third quarter with a $212 net profit.

The maker lost $84 million during the July – September quarter in 2010.  The black ink is the result of a sharp surge in demand for Chrysler products, with revenues for the latest quarter up 19% to $13.1 billion.

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“In the third quarter, Chrysler Group achieved increased sales and positive financial results, totally in line with the plan we laid out in November 2009. And in October, together with the United Auto Workers, we crafted a solid four-year contract that will support us in our growth plans and significantly reward our employees for their contribution to the revival of Chrysler,” said Sergio Marchionne, Chairman and CEO of both Chrysler LLC and its Italian partner, Fiat.