2012 Fiat 500 Lounge on 2040-cars

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Fiat board makes Chrysler merger official, approves $5.4B bond sale

Fiat's board of directors has officially approved the merger plan that will see the conglomerate's automotive operations merged with Chrysler into the new Fiat Chrysler Automobiles.
The plan essentially provides a road map for the structure of the new company. It includes provisions for Fiat shareholders - one Fiat share will translate to one share of FCA common stock. The new company will also include a loyalty voting structure, which will provide for shareholders of Fiat stock or those that have held FCA stock for at least three years. According to the plan, these shareholders would see their voting power double, with two votes for every share of FCA's common stock. The overall merger plan still needs to be approved by the company's shareholders.
In other Fiat-related news, the company's board has announced a bond issuance of four billion euro ($5.4 billion). The new bonds should provide the company with a degree of flexibility in refinancing debts associated with the merger plan.

Eight people injured after Fiat crashes at LA auto show

A man crashed a Fiat 500 that was available for test drives at the LA auto show Monday, according to the Los Angeles Times. He hopped a curb and struck a concrete planter, which shattered, sending shrapnel toward bystanders. The crash resulted in eight people being injured, with six of them going to the hospital. KTLA reports that one of the hospitalized people was the driver of the car. The Times reports that no one sustained life-threatening injuries. As seen in the photo above, the Fiat 500e used was a test car for visitors of the show. Fiat Chrysler is one of 11 car companies providing vehicles for guests to try out. The Times also reports that an LAPD spokesperson said the driver of the Fiat may not have had a valid license. It's surprising this wouldn't have been noticed when the driver signed up, as the LA auto show's test drive rules state that a valid license is required to drive. As of this writing, it appears that the show is continuing as normal, along with test drives. The show is open to the public until November 27. Car companies will also be offering test drives throughout the week, including the last day of the show. Related Video:

Fiat Chrysler completes sale of Magneti Marelli

Fiat Chrysler Automobiles completed its sale of components maker Magneti Marelli to CK Holdings Co., Ltd., the holding company of Calsonic Kansei Corporation. The Japanese parts supplier paid $6.5 billion (5.8 billion euros), which is a bit less than the $7.1 billion deal that was initially announced in October of 2018. According to Reuters, the price was adjusted based on Magneti Marelli's estimated financial position as of the closing date. The influx of cash allowed FCA to offer a special cash distribution to its shareholders for the first time in a decade. At ˆ1.30 per share, the payout corresponds to a total distribution of approximately ˆ2 billion. The dividend will pay out on May 30. "FCA remains committed to Magneti Marelli, with the new company continuing as a key supplier," FCA CEO Mike Manley said in a statement. "This sale also recognizes the full strategic value of Magneti Marelli, improving our financial position, delivering value to our shareholders and allowing us to enhance our focus on our core product portfolio." Earnings/Financials Chrysler Fiat magneti marelli