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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.

Fiat Chrysler exec talks up the future of fuel cells

When it comes to a belief in the viability of electric vehicles, you can put automotive folks like Nissan's Carlos Ghosn and Tesla Motors' Elon Musk on one side of the proverbial wall and Fiat Chrysler Chief Technology Officer Harald Wester on the other. Because while the two former executives are staking much of their companies' respective future on plug-in electric drivetrain technology, Wester sees no such future in it at all, according to an interview in Motor Trend. Oh, sure, the Fiat Chrysler technology chief does give the idea of an electrified powertrain some quarter, saying he sees standard hybrids as a solution for the "intermediate" future in addressing both higher gas prices and need to meet progressively more stringent European greenhouse gas-emissions standards. But Wester, who also oversees Fiat Chrysler's Alfa Romeo and Maserati brands, ultimately views hydrogen fuel-cell technology as the way to go for advanced powertrains and minimal emissions. As for battery-electric vehicles? Wester pretty much shoots them, citing everything from a typical EV battery's weight to the challenge of finding electric recharging stations to the fact that much of the electricity needed for those cars is produced via CO2-emitting sources. He forgot to say anything about the CO2 required to bring gasoline or hydrogen to market. Wester's "bah humbug" is actually pretty consistent with the company's party line. Last year, Fiat Chrysler head honcho Sergio Marchionne, in an interview, famously told the general public not to buy the Fiat 500e electric vehicle. That's because he estimated that the company takes a $14,000 loss on each unit sold of Fiat Chrysler's only production EV. News Source: Motor Trend via Green Car Reports Green Chrysler Fiat Electric Hydrogen Cars harald wester

All eyes on Detroit as automakers prepare for slow, careful reopening of plants

DETROIT — The U.S. factories that make Fords, Chevys and Jeeps are coming back to life this week as workers install new safety equipment and wake up machines ahead of the high-stakes restart the Detroit automakers plan to launch on Monday. Ford, General Motors and Fiat Chrysler Automobiles all plan to reopen North American factories on May 18. The reopening of the U.S. auto sector will be a closely watched test of whether workers across a range of industries can return to factories in large numbers without a resurgence of COVID-19 infections. How well the automakers do will be significant for the U.S. economy, as nearly 1 million workers are employed in the sector. Executives at Ford and GM said separately this week the companies have not recorded any cases of COVID-19 transmission in plants outside the United States since adopting new safety protocols. Those procedures include mandatory face masks, separation of workers on assembly lines, frequent cleaning of work areas and requirements that workers pass through temperature monitors and report any symptoms before entering a plant. The Detroit Three have taken unprecedented steps to share information about coronavirus safety practices and develop a common set of workplace standards for their restarts, working with the United Auto Workers union, executives said. "We thought it was critical that we did it together," Ford manufacturing and labor chief Gary Johnson told Reuters. "We've never done this as an industry." The Detroit automakers will restart U.S. plants without regular testing of workers, because they do not have access to sufficient testing capacity, executives and UAW officials said. They will test workers who report COVID-19 symptoms or have fevers discovered by temperature scanners installed at factory entrances. "We have to continue to push for this testing," United Auto Workers union Vice President Cindy Estrada told Reuters on Wednesday. "Unless we have testing weekly to keep sick people out of the plant there is always a risk." Adopting new safety practices is just part of the work the companies must do to reopen after an extraordinary shutdown that has lasted two months.   Wave zero At Ford, workers going in to ready factories are part of what Chief Operating Officer Jim Farley calls "wave zero." The work of wave zero employees "is really important for success of the startup," he said in an interview.