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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.

Hot sales have Detroit automakers shortening summer shutdowns

Back in May, there was speculation that the Detroit Three automakers would maintain or perhaps even extend their traditional summer shutdowns, mostly due to a bitingly cold winter that saw below-freezing temperatures infiltrate the southernmost reaches of the US, putting a chill on auto sales. Now, though, the numbers are in, and thanks to some promising sales figures, it looks like some domestic line workers are going to be working clear through July, in some cases.
According to Automotive News, Ford has slashed its traditional two-week hiatus for factory workers in half at four of its plants, while both Chrysler and General Motors will keep factories running nonstop (two plants in Chrysler's case and a third of GM's factories).
This is, as we said, thanks to some positive numbers. Chief among those is the Seasonal Adjusted Annual Rate, which was at an eight-year high of 17 million units. Individual figures were less promising. GM, embroiled in its recall scandal, still saw a one-percent increase while Ford dropped six percent in year-over-year sales. Chrysler was the big winner, though, with a nine-percent jump in June.

FCA CEO Manley says alliances are still possible but aren't necessary

DETROIT — Fiat Chrysler Automobiles Chief Executive has a message for Renault SA and other would-be partners: We are happy to talk, but we can go it alone. "Strategically, we have a solid future and clear plans that are being invested in and are underway now," Mike Manley said during a session with reporters the day after the company released better than expected second-quarter results. "That isn't to say if there is a better future through an alliance or partnership or merger we wouldnÂ’t be open and interested to it." Fiat Chrysler is open to re-starting merger negotiations with French automaker Renault, Manley said, but added the French car maker is not the only potential partner to gain scale or plug gaps in Fiat Chrysler's technology or vehicle lineup. "To say are they the only opportunity, the answer to that question would be a definitive ‘No,Â’" Manley said. Fiat Chrysler in June withdrew a $35 billion merger proposal with Renault after French government officials intervened in the talks and sought to delay a decision on the deal. The Wall Street Journal reported on Friday that Renault and Nissan are trying again to reshape their alliance and resolve disagreements that helped to derail the merger talks with Fiat Chrysler. Fiat Chrysler has a commercial vehicle partnership with French rival Peugeot SA, and the two companies discussed a broader combination before Fiat Chrysler made its offer to Renault, people familiar with the situation have said. Manley said automakers are not the only potential partners. "There are cooperations that can help in specific technologies. There are cooperations as we think about the consumer-car interface," he said. "You could see collaborations that never would be there in the past." Fiat Chrysler's North American business is strong thanks to Ram trucks and Jeep SUVs, but in other markets the automaker faces continued challenges. The company is overhauling its mass-market business in Europe, which is anchored by the Fiat brand. Fiat Chrysler's Europe, Middle East and Africa operations were marginally profitable in the second quarter and achieved 1.8% profit margin in 2018. Manley has set a goal of 3% operating margins, well short of the 10% margins the company forecast for North America.