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Despite Rejection Marchionne is Still Pressing GM for Partnership

“There are varying degrees of hugs,” says Fiat Chrysler CEO.

by on Aug.31, 2015

FCA Chief Sergio Marchionne has an offer he doesn't think GM can refuse - though, so far, it has.

Fiat Chrysler Automobiles CEO Sergio Marchionne isn’t one to readily take “no” for an answer, especially when it’s coming from General Motors as a rejection to his proposed partnership.

GM CEO Mary Barra and other officials have repeatedly said the Detroit giant has no interest in merging with FCA, a move Marchionne suggested would help both companies cope in an increasingly crowded and competitive global car market. But Marchionne is warning he may press ahead with an alliance whose logic, he said, is “irrefutable.”

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Saying his board is looking for ways to get a more positive response from GM, Marchionne said what he had in mind is “not hostile,” but sounded a lot like it, the FCA chief telling Automotive News, “There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you.


Marchionne Pushing for Fiat-Chrysler Listing on NYSE

CEO plans to lay out plans for new automaker to board.

by on Jan.24, 2014

Might Chrysler House in downtown Detroit be the new headquarters for Fiat-Chrysler?

The evolution of what will be Fiat-Chrysler continues as CEO Sergio Marchionne will tell the Fiat SpA board that the New York Stock Exchange should be the primary market for the newly merged company’s stock: moving it further away from Italy, Fiat’s ancestral home.

In a meeting expected to take place next week, Marchionne is expected to put forth a series of recommendations to the board. In addition to listing on the NYSE, he’s likely to recommend the company’s headquarters be located in the U.S. as well as having a location in the U.K. for tax purposes.

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Listing on the NYSE is important because it puts the company within view of potential borrowing partners, Marchionne said previously. This could be important as he continues to push Fiat from a regional European automaker to now Fiat-Chrysler, a global player of scale that can compete with bigger makers like Volkswagen AG, General Motors and Toyota. (more…)

Marchionne Agrees to Three-Year Contract Extension

Board now focusing on location of new headquarters.

by on Jan.13, 2014

Sergio Marchionne agreed to a three-year contract extension to head up Fiat-Chysler.

While it debates what continent will house the headquarters of the newly merged Fiat-Chrysler, the company’s board cleared up its near-term leadership questions by extending Sergio Marchionne’s employment contract for three years.

Marchionne told reporters at the North American International Auto Show today that succession planning is a major issue for Chrysler, which is one of the key reasons he agreed to the extension. Previously he had suggested he would be ready to leave by the end of 2015.

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“This issue about succession is a big, big issue in the group,” he said. “I am very proud of the leadership group we have assembled. But I’ve got to make sure there are replacement parts on hand. We worry about these things all the time. (more…)

Chrysler Group Trims Loss to $172 Million in Q2

Italian-controlled company once again promises 2010 breakeven or better numbers. IPO still coming in 2011.

by on Aug.09, 2010

Chrysler CEO Sergio Marchionne, center, UAW President Bob King, right, and UAW Vice President General Holiefield, left, applaud U.S. President Barack Obama during a visit on July 30, 2010.

Chrysler Group LLC today said that Q2 net revenues increased to $10.5 billion, an 8.2% improvement over the prior quarter. First half 2010 net revenues totaled $20.2 billion.

As a result the company ended Q2 2010 with an operating profit of $183 million and a first half 2010 operating profit of $326 million.

However, Q2 resulted in a net loss of $172 million, down slightly from a loss of $197 million in Q1.

Analysts had projected an operating profit of $400 million. And achieving profitability is crucial to plans to taking the company public some time in 2011.

In the 14 months since Chrysler emerged from bankruptcy it has only had one major product launch, the Jeep Grand Cherokee, which just went into production at the end of May. The changeover cost the company $64 million in revenue, not including tooling and other plant costs. Moreover Chrysler is carrying enormous interest costs from outstanding taxpayer loans. Payments of $296 million in Q2 accounted for nearly all of the swing between the operating profit and the net loss.

Chrysler marketshare remained at 9.4% in the United States and down slightly to 12.9% in Canada, its two primary markets as it has almost no presence overseas.

Sergio Marchionne, Chief Executive Officer, Chrysler Group said, “an extraordinary amount of work still lies ahead,”


Exner Chrysler “Thomas Special” fetches $780,000

Auction at Meadowbrook surprises auctioneer with price.

by on Jul.27, 2010

The successful bid was substantially over what the RM Catalog expected the car to bring.

Chrysler must be on a role.

First Sergio Marchionne indicates Chrysler succeeded in making a profit during the second quarter and then a 1952 Chrysler “Thomas Special” goes for $780,000 during some spirited bidding at the RM Auctions annual auction at Meadowbrook Hall in Rochester Hills, Michigan.

The successful bid was substantially over what the RM Catalog expected the car would fetch. The successful bid came in via phone, RM officials said.

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However, the Chrysler had a unique “provenance,” noted RM spokeswoman Amy Christie. It is one of the most stylistically important designs of in American automotive history.


Alfa’s non-Demise in U.S. Greatly Exaggerated

It is no go for Alfa Romeo, at least for a while, says Marchionne.

by on Jan.14, 2010

Later, rather than sooner, for Alfa in the U.S.

Sergio Marchionne, the chief executive officer of Fiat and Chrysler, said one of Fiat’s key reasons for teaming up with the ailing Chrysler Group LLC was to allow the Italian automaker to return to the U.S. market after decades of absence.

“You’ll start to see the first Fiat cars in the United States late this year, Marchionne told the Automotive News World Congress, which is held this week in Detroit immediately after the North American International Auto Show.

However, when a member of the audience asked him about the long-rumored return of Alfa Romeo brand to the US, Marchionne indicated he was not in all that much of a hurry.


“I’ve told them they have to earn it,” said Marchionne.

Marchionne said Alfa has to be successful in its primary markets in Europe before it can begin dreaming about selling cars once again in the U.S.

In the interim, Marchionne is focused on the Chrysler business.


Fiat Reports First Quarter Loss of $536 million

Proposed savior of Chrysler is facing its own sales and profitability challenges.

by on Apr.23, 2009


While the core Fiat brand strategy is ecologically sound, the sales decline calls into question the demand and profitability of green automobiles

While the Auto Task Force of President Obama has endorsed a takeover of Chrysler LLC by Italian carmaker Fiat, the group’s own first quarter results call into question the health of one of Europe’s leading small car makers.

Fiat SpA in Turin this morning reported a Q1 loss of €410 million ($536 million) even as it was claiming that it can still be profitable for the year, estimating a €1 billion return. The loss, which compared with a profit of €405 million a year earlier, comes as the restructuring negotiations between Chrysler and its secured debtors and unions face an April 30th deadline, with no resolution in sight. Fiat also has almost $9 billion in debt, excluding financial services.

Yesterday, the U.S. Treasury Department immediately and publicly turned down the latest offer by banks and bondholders to convert only a small portion of Chrysler’s debt in return for a 40% stake in the company. Chrysler said, “We continue to work around the clock” to obtain an agreement that meets the requirements of the U.S. and Canadian governments for continued taxpayer financing instead of liquidation.

Fiat’s loss, the first since 2004, was caused by declining sales of its cars and trucks of -25%. Fiat Automobiles is one of Europe’s ten best-selling automotive brands, and in 2007 and 2008 it had the lowest average value for CO2 emissions from its vehicles. The company also produces Alfa-Romeo, Lancia, and Iveco trucks. Results for Maserati and Ferrari car brands are not included in the Group’s reporting.

While the core Fiat brand strategy is ecologically sound, the sales decline also calls into question the demand and profitability of green automobiles in times of economic crisis. Fiat is Europe’s leader in the production of compact vehicles, and Chrysler recently showed its 500 model at a press conference during the New York International Auto Show. The small 500 and the larger Bravo models introduced Euro 5 complaint petrol and diesel engines ahead of competitors. By the end of 2009, most engines in the FIAT range will will comply with Euro 5 standards. This places it ahead of competitors, according to Fiat. (more…)