1999 Ford Mustang 35th Anniversary Coupe V6 on 2040-cars

Auto blog

Fiat pondering swallowing rest of Chrysler, US IPO

At the moment, Fiat is in court with the United Auto Workers, waiting for the justice system to provide some guidance on a fair price for 41.5-percent of Chrysler it doesn't own. Fiat owns 58.5 percent of the company and wishes to buy the remainder, which is owned by the union's VEBA retiree trust, but the Italian company and the UAW are on different sides of the galaxy when it comes to assigning a fair price to that outstanding stake.
Naturally, Fiat CEO Sergio Marchionne is considering his options. A new report in the The Wall Street Journal says one of the scenarios being considered now is - depending on the outcome of the court case - to purchase the 41.5-percent stake and then issue an IPO to recoup some of the cost. About two months ago, Marchionne put the odds of an IPO for a wholly combined Fiat/Chrysler at 50 percent. Even with the WSJ report, it's not clear if those odds have changed.
The current company structure leaves a lot of options as to how a potential IPO could be issued, but it's said that Marchionne is against it, preferring "to be one company," under Fiat, indivisible. If Fiat is finally able to purchase all of the Pentastar, it would get access to Chrysler's war chest, pegged at $11.9 billion at the end of Q3 in 2012, and that money can't come soon enough for a brand taking a beating in Europe and delaying product over cash concerns.

Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Junkyard Gem: 1978 Chrysler LeBaron Coupe

From the early 1930s through the middle 1970s, Chrysler used the LeBaron name (taken from a coachbuilder eventually consumed by the car company, much as Fleetwood and Ghia were absorbed by GM and Ford, respectively) on high-end Imperial models. Then, facing decreased demand for mammoth land yachts thanks to certain geopolitical events, Chrysler created a separate LeBaron model, based on the midsize platform used for the Dodge Diplomat/Plymouth Gran Fury. Production of this LeBaron began in 1977 and continued until the debut of Lee Iacocca's famous K-Car LeBarons for the 1982 model year. While you'll find the occasional Diplomat these days, the 1977-1981 LeBaron has become all but extinct. Here's a crash-victim '78 in a Denver car graveyard. Plenty of times, I'll find discarded cars of this era that seem to have moldered outside for decade after neglected decade, but this one drove to its final crash. That means that the 318-cubic-inch (5.2-liter) V8 under the hood would be a good bet to buy for another Chrysler project… but nobody seems interested, because this Malaise Era engine made only 140 horsepower when new. The base engine in the 1978 LeBaron was a 110-horse Slant-6, so at least this car had the upgrade. Sure, the Diplomat was the not-so-plush successor to the non-plush Aspen/Volare and the even-less-plush Dart/Valiant, but Chrysler installed a reasonably nice interior in the Diplomat's Chrysler-badged sibling. This one has the standard "Cortez" cloth-and-vinyl bench seat, but not the optional power windows or door locks. This one has stickers for Run-D.M.C., Public Enemy, Slayer, and MegadethÂ… plus one for the Oakland Raiders, hated rivals of Denver's local sportsball team. I'm pretty sure the car was not being driven by the original purchaser when it crashed. Believe it or not, this car was available with a four-on-the-floor manual transmission and a V8 engine. Were any sold that way? I wouldn't bet on it. Molded-in faux stitching proved very popular in American cars of the late 1970s and early 1980s. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This advertisement may have resulted in some cannibalization of Cordoba sales, though the Pontiac Grand Prix stood as the primary rival for the '78 LeBaron coupe. Featured Gallery Junked 1978 Chrysler LeBaron Coupe View 39 Photos Auto News Chrysler Automotive History Coupe Chrysler LeBaron Junkyard Gems