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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.

Chrysler recalling 780k minivans over fire risk

Chrysler is recalling 780,000 of its Town & Country and Dodge Grand Caravan minivans from the 2010 to 2014 model years due to the possibility of circuits overheating, which can lead to a fire. Of the 780,000 total vans being recalled, Chrysler estimates that 644,850 are in the US, 106,980 are in Canada, 8,009 are in Mexico, and 20,638 are in other markets. All of the affected vehicles were built between August 25, 2010 and October 31, 2013.
Chrysler's engineers discovered that beverage spills or exposure to moisture (from rain, snow, car washes, and the like) were linked to circuits shorting in the window switch assembly. Short circuits can overheat, and thus, cause a fire.
Chrysler will contact owners and let them know when they may schedule service, at which point, the window switches will be replaced. In the interim, the automaker says that owners may visit their dealers after May 14 to have the switches disconnected.

Fiat Chrysler recalls 1.6M vehicles to fix Takata airbags

DETROIT — Fiat Chrysler is recalling more than 1.6 million vehicles worldwide to replace Takata front passenger airbag inflators that can be dangerous. Takata inflators can explode with too much force, hurling shrapnel into drivers and passengers. At least 23 people have died from the problem worldwide and hundreds injured. The recall covers the 2010 through 2016 Jeep Wrangler SUV, the 2010 Ram 3500 pickup and 4500/5500 Chassis Cab trucks, the 2010 and 2011 Dodge Dakota pickup, the 2010 through 2014 Dodge Challenger muscle car, the 2011 through 2015 Dodge Charger sedan, and the 2010 through 2015 Chrysler 300 sedan. It's part of the largest series of automotive recalls in U.S. history. About 10 million inflators are being recalled this year. Already Ford, Honda and Toyota have issued recalls in the latest round. Fiat Chrysler owners will be notified by letter and dealers will replace the inflators with safe ones. The company says it's not aware of any injuries in vehicles involved in this recall, but says it has plenty of replacement parts and is urging people to get the repairs done. "Recall service is free, we have replacement parts and dealers are ready to help," Mark Chernoby, FCA's head of safety for North America, said in a statement. The recall includes 1.4 million vehicles in the United States. Takata used the chemical ammonium nitrate to create a small explosion to inflate the airbags. But the chemical can deteriorate over time due to high humidity and cycles from hot temperatures to cold. The most dangerous inflators are in areas of the South along the Gulf of Mexico that have high humidity. The Fiat-Chrysler recall is part of a phased-in replacement of Takata inflators being managed by the National Highway Traffic Safety Administration. Owners can check to see if their vehicles have been recalled by going to airbagrecall.com and keying in license plate or vehicle identification numbers. More than three years after the U.S. National Highway Traffic Safety Administration took over management of recalls involving Takata inflators, one third of the recalled inflators have not been replaced, according to an annual report last year from the government and a court-appointed monitor. The report said 16.7 million faulty inflators out of 50 million under recall have yet to be fixed. Safety advocates say the completion rate should be far higher given the danger associated with the inflators.