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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.

Mopar's 80 years told through vintage ads

It's more than just car parts. Mopar started in 1937 an antifreeze brand, and 80 years later Fiat Chrysler's now-iconic aftermarket division is known for everything from muscle cars to smart phone apps. This is reflected in its advertisements over the years, which show off the brand's capabilities at different moments. Rediscovered from deep in Mopar's archives as it kicks off a year-long celebration of its history, the ads are snapshots of the former Chrysler Corp. and the mood of America at those times. A colorful, free-spirited 1972 ad hawks T-shirts. A plainer 1964 spot shows off Mopar's expansive portfolio with the tagline, "sorry, we ran out of space!" There were too many parts to show them all. Another 1960s ad explains Mopar's new wire and cable products in what was likely a magazine spread or multi-column newspaper entry. Going back farther, an ad from the 1940s touts radios through wind-in-your-hair exuberance, while a later placement shows a Ward Cleaver-type waxing his hardtop. Slightly more recently in 1989, Mopar used its muscle-car heritage to encourage restoration and customization just as nostalgia for that era was growing. "The Mopar brand holds an unparalleled place in the automotive world, possessing name recognition, scope of service, and passionate enthusiasts unmatched by any other service and parts organization in the industry," Pietro Gorlier, Mopar's global chief, said in a statement. While those advertisements highlight its earlier days, Mopar is using its 80th year to look forward, noting its modern service offerings, competition in motorsports, and special edition models, like a custom Ram Rebel. These ventures have advanced the Mopar's scope and elevated its awareness with consumers, who often don't know what brand of aftermarket products their car uses. Yes, Mopar still wants to sell as many car parts as possible, but as these ads show, it's always been more than that. Related Video: Featured Gallery Vintage Mopar Ads Marketing/Advertising Chrysler Fiat Automotive History

Renault wants to merge with Nissan, then go after Fiat Chrysler

The late Sergio Marchionne used to say consolidation would be the only way to compete against the biggest global carmakers. The company looks certain to fulfill that goal, but perhaps not in the way he intended. The Financial Times reports that Renault wants to begin merger talks with Nissan in the next 12 months. Assuming a merger gets completed, the plan is for the combined company to then pursue another merger, with Fiat Chrysler a prime target. Renault, Nissan, and Mitsubishi have been busy since cutting ties with ex-alliance boss Carlos Ghosn. They formed a new alliance board with Renault chairman Jean-Dominique Senard at the helm, Renault has shrunk the size of its board while Nissan added more outside directors, and the two agreed to a new governance structure to ease operational decision making. All three automakers have walked away from Ghosn-era goals to sell 14 million cars and find 10 billion euros in savings by 2022. New strategic plans for all three car companies are in the works. With stability in sight, it's said Senard wants to succeed where Ghosn failed — a full-fledged merger between Renault and Nissan with talks to begin "as soon as possible." Ghosn's pursuit of a merger last year in attempt to make the 20-year-old alliance "irreversible" is part of what led to his downfall, with Nissan executives including CEO Hiroto Saikawa against the push. The new effort is presented as larger scale being the only way for the alliance to take on companies like Volkswagen and Toyota. But the Nissan-Renault-Mitsubishi trio sold 10.76 million cars around the world last year, second to Volkswagen with 10.83 million sales, ahead of Toyota with 10.39 million. If Nissan hadn't suffered a 2.8 percent dip in sales, the alliance would have taken the top spot. If a little scale is good that means more is better, right? Pulling Fiat Chrysler into the alliance would add around 5 million annual sales, and would be another move in Ghosn's footsteps. The former honcho is said to have "held talks with FCA" about some kind of union within the past three years. The French government, which has a 15 percent stake in Renault and double voting rights, shut down the initiative. It's not clear if FCA will be an independent company by the time a potential Nissan-Renault merger closed, though.