2014 Fiat 500 Abarth on 2040-cars

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Fiat seeking $10B in financing to buy Chrysler

As Fiat looks to become the full owner of Chrysler, all it has standing in its way is the retiree trust of the United Auto Workers, which currently holds the remaining 41.5 percent of the company as the result of the Pentastar's bankruptcy deal. The Detroit News is reporting that that Fiat is currently talking to numerous banks in an attempt to raise around $10 billion to fund the purchase of Chrysler's remaining stake with enough left over to refinance the debt of both companies. We've known that Fiat has been working to obtain the capital to buy out Chrysler for some time now, but this is the first time we've seen Fiat tip its hand about how much cash it thinks it will need to close the deal.
The first order of business is a legal dispute over the value of the UAW's stake in Chrysler, which the report indicates could cost Fiat around $3.5 billion. The acquisition of remaining shares could happen by this summer, but it sounds like CEO Sergio Marchionne (above) might not be ready for a full merger until next year.

Marchionne's pay as Fiat CEO falls to $5M

Sergio Marchionne will be buying fewer of his iconic sweaters, as his 2013 pay from Fiat took a dip from $6.24 million to an even $5 million. Marchionne, who was also CEO of Chrysler, made $307,989 thanks to some stocks and benefits from the American company, although he didn't take a salary. Of that $5 million paid by Fiat, $3.19 million came from Marchionne's fixed salary while the remaining $1.8 million was paid for hitting unspecified performance targets.
The news comes from Fiat's compensation reports, which also showed that the 61-year-old, who already owned three million shares in Fiat at the end of 2013, was able to receive an additional 2.3 million shares through a stock incentive program. According to Automotive News Europe, the additional shares would be worth about $25 million at today's prices, although so far, Marchionne has declined to claim the extra shares.
According to ANE, Fiat reported a 2013 trading profit of $4.7 billion.

All Fiat 500 production moving to Poland by 2015?

With the next-generation Fiat 500 expected to debut in 2015 with more of a global presence, there is a growing possibility that production of the cute little hatchback will be consolidated to a single plant in Poland. According to Automotive News Europe, Fiat plans to end production of the 500 in Toluca, Mexico, which is expected to better fill Fiat's European production capacity, free up more North American capacity and create a single Fiat 500 design for all markets.
Currently, Fiat builds two similar but structurally different 500 models for Europe and North America, and assembling just one version at the Tychy, Poland would allow it to cut costs for development of the new car. This would also help fill some of the capacity void that Tychy has suffered in recent years, building just 300,000 units last year compared to more than double that in 2009. The report says that while Chrysler's North American production capacity is near its limit, Fiat's European plants will be used to meet increased demand before a new plant is built in North America. As for Toluca, there is no indication as to what vehicle Chrysler would replace the 500 with at this facility, which also builds the Dodge Journey.