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Posts Tagged ‘Sergio Marchionne’

Fiat, VW Deny Merger Talks

But VW has hinted it’s still hungry for acquisitions.

by on Jul.17, 2014

VW's Winterkorn and Fiat's Marchionne shown emerging from a meeting in Geneva last year.

Volkswagen Chairman Ferdinand Piech has a voracious appetite – for acquisitions, that is, the recent additions of Porsche and truckmaker Scania AB to the VWAG family bringing to thirteen its global brand count. And he has openly expressed interest in adding more, his second-in-command, VW Chief Executive Martin Winterkorn even naming Alfa Romeo as a possibility.

So, why not go one step further and buy Alfa’s parent, the newly merged Fiat Chrysler Automobiles? Or so goes a story in Germany’s Manager Magazin that set the rumor mill ablaze today. It claimed that Volkswagen, the largest maker in Europe and the world’s second-largest, based on 2013 sales, had approached Fiat about selling it some or all of the Euro-American company.

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However, both companies are firmly denying the report, Fiat declaring in a statement that has, “not held discussions with Volkswagen regarding a potential merger.” For its part, a VW statement flatly said that, “There are currently no M&A projects on the agenda,” adding that, “We are now focusing on boosting efficiency within the Group.”

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Fiat Chrysler Stock to List on NYSE in August

Critical completion to merger.

by on Jul.05, 2014

Fiat and Chrysler expect to formally complete their marriage with an Aug. 1 shareholder vote.

Fiat Chrysler Automobiles has disclosed in a filing with Securities and Exchange Commission that it is prepared to list 750.5 million shares on the New York Stock Exchange once its shareholders finalize the takeover of the Chrysler Group.

Despite completing the acquisition of Chrysler stock earlier this year, FCA will not exist legally until shareholders vote to approve the merger August 1 during a special meeting. The prospectus filed by FCA said it intends to begin trading its stock on the first day following the merger.

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The FCA common shares will be listed on the NYSE and also are expected to be listed on the principal Italian stock exchange in Milan, the Mercato Telematico Azionario, or MTA, pending the approval of authorities in Italy and the Netherlands where the new company will be chartered. FCA has already set up its headquarters in London and will use Chrysler’s home in Auburn Hills and Fiat’s base in Turin as its operational headquarters.

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Fiat Chrysler Takes Next Step toward Completing Merger

Italian maker’s board approves new framework.

by on Jun.16, 2014

Fiat Chrysler Automobiles N.V. took one step closer to being a reality with the approval the Fiat SpA board of directors for the merger.

One of the final steps of making Fiat and Chrysler one complete company was taken over the weekend when the Fiat SpA board approved the cross-border merger terms that will allow the Italian automaker to become a subsidiary of Fiat Chrysler Automobiles N.V.

The terms are essentially the blueprint for new company’s structure, including being organized in Netherlands, as well as being listed on the New York Stock Exchange and on the Mercato Telematico Azionario in Milan, Italy.

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Part of that includes Fiat shareholders receiving one share of Fiat Chrysler stock for each share of stock they own in the Milan-based maker. The plan must be approved by the Fiat shareholders, who will get the opportunity to do so at meeting in the third quarter, according to media reports. (more…)

Ambitious Alfa Romeo Launches U.S. Comeback

Big plans hinge on the success of one small car.

by on Jun.13, 2014

Alfa Romeo's got big plans for a comeback in the U.S. starting with the new 4C two-seater.

It may be a small car but there’s a lot riding on the upcoming launch of the new Alfa Romeo 4C. Marking the brand’s return to the U.S. market after a two-decade absence, the success – or failure – of the two-seat sports car could determine whether the Alfa brand can pull off its ambitious global comeback strategy.

The once-grand marque has become an insignificant player in recent years, but parent Fiat Chrysler Automobiles has approved a 5 billion Euro product development plan that will yield a broad assortment of new models during the next half decade. But as the first offering to reach Alfa’s new U.S. dealer network, it will serve as the foundation for that planned revival, which is expected to see Alfa selling 100,000 cars a year in the U.S. annually before the end of the decade.

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“It’s crucial,” Alfa Romeo CEO Harald Wester told TheDetroitBureau.com during a media driving event in San Francisco. “This is the reincarnation of what Alfa stood for in the past,” and what one industry observer described as the “glowing neon sign” that signals what the brand hopes to be in the years ahead. (more…)

Unexpected Canadian Election Results Could be Good News for Automakers

Liberals route Ontario Conservatives – and are likely to restore aid package to Chrysler.

by on Jun.13, 2014

Fiat Chrysler CEO Sergio Marchionne had weighed in with criticism of ruling Conservative leader.

With growing concerns about the economic viability of producing cars and car parts in Canada, an unexpected upset in provincial elections may wind up keeping makers like General Motors, Ford and Toyota — as well as numerous parts makers — from fleeing the country.

There’s been a sharp divide over aid for the auto industry, but as the dust settles after the vote in Ontario, Chrysler could turn out to be the most immediate winner. A proposed $2 billion package for the maker had been put on hold, and possibly scuttled as a result of a political controversy leading up to the election.

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How that will play out for the rest of the auto industry operating North of the Border remains to be seen, but observers warn that with the Canadian currency running close to par with the American dollar in recent years, it is becoming increasingly difficult for automakers to justify continuing operations that may suffer from serious cost penalties.

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Fiat Loses $14K on Each 500e Sold

Marchionne encourages potential buyers to rethink purchase.

by on May.22, 2014

Each Fiat 500e sold costs Fiat Chrysler $14,000, making the little EV possibly CEO Sergio Marchionne's least favorite vehicle.

One of the gaps in the FCA product line-up is a shortage of hybrid or electric vehicles. However, the company does have one available – the new Fiat 500e – whether CEO Sergio Marchionne likes it or not.

The charismatic leader of the newly merged companies has never been a big fan of hybrids or EVs in large measure because, well, they’re not profitable. In fact, the new 500e is going to cost FCA more than $10k each time one rolls out of the showroom.

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Viscerally opposed to losing money, Marchionne actually appeared to be campaigning against his own product recently. He may not be alone. There are several manufacturers that are less than enthusiastic about their entries into the small, but growing market for electrified vehicles. (more…)

Marchionne Hires Consultants to Review FCA Recalls

CEO wants to open UAW contract talks next month.

by on May.22, 2014

FCA CEO Sergio Marchionne (r), with outgoing UAW Pres. Bob King at the Sterling Heights, Michigan, plant recently. Marchionne said he wants to open UAW contract talks next month: a year early.

The ongoing saga of recalls from General Motors is having a spillover effect on the competition: FCA CEO Sergio Marchionne said he’s bringing in outside consultants to examine the company’s recall practices.

Speaking to reporters after an event at the Brookings Institution, Marchionne said that he’s beginning to see a new level of attentiveness by Chrysler executives when it comes to safety.

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“It can’t be that all of a sudden we woke up and we realized we had these issues, so there must be a change in attitude,” he said, according to the Detroit News. “We’re beginning to see people getting truly, truly cautious.” (more…)

Chrysler Kicks Off Nine-Speed Production in Indiana

Company uses old plant for new gearbox.

by on May.14, 2014

FCA CEO Sergio Marchionne told a crowd at the dedication of the new Tipton, Indiana, plant, it will play a vital role with the company.

Chrysler raised an Indiana plant from the dead to build its new nine-speed transmission that will be used to save fuel in the company’s passenger cars and utility vehicles and future fuel-efficiency targets.

Chief Executive Sergio Marchionne said at the company’s official dedication of the Tipton, Indiana, plant, which was basically abandoned five years ago, the facility is will play a vital role in creating prosperity for the both the company and for communities in north central Indiana.

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“My confidence is rooted firmly in the knowledge that those of you who work in this area have shown a consistent dedication to delivering products with outstanding quality,” said Marchionne, who also told reporters is looking at ways to expand Jeep production in the U.S. but offered no specifics. (more…)

Maserati, Alfa Romeo to Get a Flood of New Products

Two Italian brands stand to score big under Fiat Chrysler 5-year plan.

by on May.07, 2014

A production version of the Maserati Alfieri Coupe Concept should reach market in 2016.

It’s been a frustratingly long wait for fans of Italy’s Alfa Romeo, two decades of hints and promises that the brand was finally heading back to the U.S. market followed by repeated delays – Alfa only showing off its new 4C sports car at last month’s New York Auto Show.

While Maserati fans have had a little more to cheer about, the upscale brand has only just begun to show its potential with recent product launches like the new Ghibli and redesigned Quattroporte.

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But the two marques seem destined to have a much brighter, product-rich future. At this week’s day-long strategy session, officials from Fiat Chrysler Automobiles outlined plans that could see a flood of new products roll into showrooms for both Maserati and Alfa. In fact, the latter maker is set to benefit from a newly unveiled “skunk works program” that is expected to yield a full eight new models by 2018.

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Fiat Chrysler Projects Major Growth Over Next 5-Year Cycle

North America still key, carmaker emphasizes, though China critical to future.

by on May.07, 2014

FCA CEO Sergio Marchionne told reporters and analysts at today's day-long meeting that he will be staying through 2018: two years long than expected.

The newly merged Fiat Chrysler Automobiles expects to achieve significantly better growth than the rest of the auto industry, company officials said Tuesday as they laid out the carmaker’s five-year global strategy.

The Euro-American company expects to see global sales surge from the 4.4 million vehicles it sold in 2013 to somewhere on the order of 7 million by 2018, said Chief Financial Officer Richard Palmer, while significantly boosting margins and earnings.

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To keep the company on track, “I am going to stay,” CEO Sergio Marchionne confirmed, “to make sure the plan gets finished.” The Canadian-educated executive had previously only committed to remaining with Fiat Chrysler through 2016. (more…)