2004 Chrysler Sebring Lxi on 2040-cars

Auto blog

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.

Weekly Recap: Marchionne's Manifesto again calls for industry consolidation

Sergio Marchionne isn't taking no for an answer. Despite public rebuffs from General Motors and Ford, the leader of Fiat Chrysler Automobiles continues to push for consolidation within the auto industry. His latest assertion came Wednesday when he said a combination of FCA with another automaker could net savings of $5 billion or more annually. No, this isn't about selling his company, he claimed, it's about cutting costs. Put simply, the auto industry wastes money, Marchionne said during FCA's earnings conference call. Companies invest billions to develop basic components that all cars use, but many consumers don't care how they work or recognize the differences. "About half of this is really relevant in terms of positioning the car in the marketplace," he said. "The other half, in our view, is stuff which is neither visible to the consumer nor is it relevant to the consumer." In 2014, top automakers spent more than $100 million on product development, FCA estimated. Marchionne said consolidation could save up to $1 billion on powertrains alone, noting that almost every automaker offers four- and six-cylinder engines. Not everyone has to make their own, he contended. "The consumer could not give a flying leap whose engines we are using because they are irrelevant to the buying decision." That's pretty provocative for enthusiasts, but less so for average consumers. Still, there are major differences in power and efficiency ratings, even among similar engines. Skeptics could argue consolidation would also weaken competition and reduce choices for car buyers. Marchionne stressed his presentation, curiously entitled Confessions of a Capital Junkie, wouldn't require closing factories or dealerships. It's not his final "big deal" as CEO, intent to sell FCA, or a way to elevate his company up the automotive food chain. He claims he wants to fundamentally change the industry and its habit for burning cash. "The horrible part about this, and the thing that I find most offensive, is that the capital consumption rate is duplicative," he said. "It doesn't deliver real value to the consumer and it is in its purest form, economic waste." Other News & Notes Ford Profits dip in first quarter Ford profits fell $65 million to $924 million in the first quarter, hampered by slight dips in revenue and sales.

The Grand Caravan, at least the name, isn't dead yet in Canada

Last week we got Stellantis. This week, we’re learning that the Grand Caravan name isnÂ’t actually dead. ItÂ’s just moved to Canada. Allow us to explain. The Dodge Grand Caravan is well and truly gone. However, FCA has decided the name is too good not to use. Therefore, FCA Canada just announced that Canadians will get the Chrysler Grand Caravan for the 2021 model year. One look at the photos will tell you most everything you need to know about the van. ItÂ’s a rebadged Chrysler Voyager, which itself is a budget Chrysler Pacifica by a different name. Basically, the U.S. gets the Voyager, and Canada gets the Grand Caravan. “WeÂ’re incredibly proud to maintain the ‘Grand CaravanÂ’ nameplate exclusively in the Canadian marketplace,” said David Buckingham, President and CEO, FCA Canada. “Particularly here in Canada, that name has become synonymous with affordable, safe and innovative family transportation that the 2021 Chrysler Grand Caravan builds upon.” Now that the Voyager and Caravan are the same again, the next logical step would be to bring back Plymouth, right? Rebadged Plymouth Hellcats wouldnÂ’t bother us. Just Â… you know, an idea. Canadian customers will have the choice of two trims for the Grand Caravan: Base and SXT. Similar to the U.S., upper trim levels of the van will be called Pacifica. The two will be sold alongside each other at Chrysler dealerships. Photos of the Pacifica with the Grand Caravan badge already have us a little weirded out, but now youÂ’ll know whatÂ’s going on during your next trip up north when you see a Chrysler Grand Caravan roll by. Related video: