• Sign in to follow this  
    Followers 0

    Chrysler Files For An IPO



    William Maley

    Staff Writer - CheersandGears.com

    September 24, 2013

    Last night, Chrysler announced they are preparing to do an initial public offering of some of its shares. This comes as a result of Chrysler/Fiat CEO Sergio Marchionne and the UAW's Retiree Medical Benefits Trust (AKA the VEBA trust) not coming to an agreement concerning the 41.5 percent stake of Chrysler the trust holds.

    Chrysler hasn't announced the amount of shares nor the price in their IPO documents, but it did set a maximum proposed offering price of $100 million. J.P. Morgan is the the investment bank for Chrysler's IPO. The shares will come from the VEBA trust.

    Why is Chrysler doing an IPO? Fiat and the UAW have been arguing over how much those shares are worth and have taken this court for a judge to decide. By doing an IPO, this allows the two parties to possibly see how much those remaining shares are worth.

    This move presents risk for both parties. Fiat and Chrysler have the most to lose in the IPO. The IPO complicates Sergio Marchionne's plan to merge the two companies.

    “Completion of this offering will prevent or delay Fiat from meeting this objective. Fiat has informed us that it is reconsidering the benefits and costs of further expanding its relationship with us and the terms on which Fiat would continue the sharing of technology, vehicle architectures and platforms, distribution networks, production facilities and engineering and management resources,” said Chrysler in its filling.

    If Fiat really wants Chrysler badly, they could boost their offer for the remaining shares. Also, Fiat and Chrysler are on the hook for IPO. The money made from selling the shares would go to VEBA.

    The UAW also has a big risk. If the share prices are much lower than UAW expects, Fiat could go low on their offer.

    “Chrysler’s IPO is being motivated by the need of the UAW health care trust to cash in on the company’s gains over the past several years to shore up their own cash reserves. This goes against Fiat’s desire for a 100-percent ownership stake in Chrysler, and in the end, may only serve as a negotiating tactic,” said Kelley Blue Book analyst Alec Gutierrez in a statement.

    Marchionne says the IPO could come as early as the end of November, but the end of the year is not generally seen as a good time to take a company public.

    If the IPO goes through, this would be the first time Chrysler has been publicly traded since 1998.

    Source: Chrysler, The Detroit News, USA Today

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster.

    Press Release is on Page 2


    Chrysler Group LLC Files Registration Statement for Proposed Initial Public Offering

    September 23, 2013, Auburn Hills, Mich. - Chrysler Group LLC announced today that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the "SEC") relating to a proposed initial public offering of common shares. The number of shares to be offered and the price range for the offering have not yet been determined. The common shares to be sold in this offering are proposed to be sold by the UAW Retiree Medical Benefits Trust (the "VEBA Trust"), which has exercised demand registration rights under a shareholders' agreement with Chrysler Group LLC. The VEBA Trust will receive all of the net proceeds from this offering.

    J.P. Morgan Securities LLC will be the lead book-running manager of the offering. This offering will be made only by means of a prospectus. A copy of the preliminary prospectus, when available, may be obtained by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (866) 803-9204.

    A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Copies of the registration statement can be accessed through the SEC's website. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

    0


    Sign in to follow this  
    Followers 0


    User Feedback




    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Popular Now

  • Today's Birthdays

    1. gmcbob
      gmcbob
      (42 years old)
  • Similar Content

    • By William Maley
      FCA US Reports November 2016 U.S. Sales
      Ram Truck brand sales up 12 percent compared with same month a year ago; Ram pickup truck sales up 8 percent All-new 2017 Chrysler Pacifica minivan sales up 13 percent compared with previous month of October Jeep® Renegade sales up 30 percent; all-new 2017 Jeep Compass makes its U.S. debut at the Los Angeles Auto Show December 1, 2016 , Auburn Hills, Mich. - FCA US LLC today reported U.S. sales of 160,827 units, a 14 percent decrease compared with sales in November 2015 (187,731 units).
      FCA US retail sales of 126,780 units were down 2 percent year over year in November, representing 79 percent of total sales for the month. Fleet sales of 34,047 units were down 42 percent year over year in November as FCA US continues to reduce its sales to the daily rental segment. Fleet sales represented 21 percent of total FCA US sales in the month.
       
      Ram Truck brand sales were up 12 percent in November versus the same month in 2015. Ram ProMaster van sales increased 126 percent in November, while Ram pickup truck sales increased 8 percent. The Jeep® Renegade small SUV had a strong November with a 30 percent sales gain, while sales of the Fiat 500 were up 18 percent compared with the same month a year ago.
       
      Sales of the all-new 2017 Chrysler Pacifica – launched earlier this year – were up 13 percent in November compared with sales in the previous month of October. November sales represented the minivan’s second best sales month this year.
       
      Ram Truck brand sales are up 11 percent calendar year to date through November compared with the same 11-month period in 2015. Jeep brand sales are up 8 percent calendar year to date as well.
       
      Ram Truck Brand
      Ram Truck brand sales, which include the Ram pickup, Ram ProMaster and Ram ProMaster City, increased 12 percent in November versus the same month in 2015. With its 126 percent sales gain, the Ram ProMaster van turned in the largest year-over-year percentage increase of any FCA US vehicle in November. Sales of the Ram pickup truck increased 8 percent in November. The Ram 1500 earned Best Buy awards last month from Consumers Digest and Consumer Guide Automotive. Also last month, the Green Car Journal named the Ram ProMaster City its 2017 Commercial Green Car of the Year for the second consecutive year – the first time a vehicle has won one of the magazine’s titles consecutively. Ram Truck brand sales are up 11 percent calendar year to date compared with the same 11 months in 2015.
      Jeep Brand
      Jeep brand sales were down 12 percent compared with the same month a year ago. The Jeep Renegade turned in a strong 30 percent increase in November compared with the same month in 2015. The Renegade earned Best Buy awards last month from Consumers Digest and Consumer Guide Automotive in the subcompact SUV segment. In addition, the Jeep Grand Cherokee earned a Consumers Digest Best Buy for the seventh consecutive year in the mid-size SUV category. Jeep brand sales are up 8 percent calendar year to date compared with the first 11 months of 2015.
       
      The all-new 2017 Jeep Compass made its U.S. debut last month at the Los Angeles Auto Show. The global compact SUV delivers unsurpassed 4x4 capability, world-class on-road driving dynamics, advanced fuel-efficient powertrains and premium styling. The Compass will be manufactured in Brazil, China, Mexico and India, for consumers in more than 100 countries around the world.
       
      FIAT Brand
      FIAT brand sales, which include the Fiat 500, Fiat 500L, Fiat 500X and Fiat 124 Spider, were down 15 percent in November. However, sales of the Fiat 500 were up 18 percent year-over-year in November. In its fifth month in the market, the all-new 124 Spider recorded sales of 350 units. The 124 Spider earned a 2017 Best Buy last month in the sporty performance car segment from the automotive editors at Consumer Guide Automotive, who noted that the 124 Spider “represents an impressive amount of fun for the money.” The 124 Spider also took home the award for Best-Looking New Car from readers of The Car Connection in November.
      Dodge Brand
      Dodge brand sales were down 21 percent in November compared with the same month in 2015. However, Dodge Charger sales increased 34 percent compared with the same month a year ago. Dodge Viper sales were up as well. The Dodge Durango earned a Best Buy last month from Consumer Guide Automotive in the large SUV category – for the fifth consecutive year. In addition, for the third time in three years, the Charger has earned the Residual Value Award in the full-size category from ALG, the industry benchmark for residual values and depreciation data. Also, the Charger and Durango were “most loved” in their respective segments for the third consecutive year making Strategic Vision’s “Most Loved Vehicles in America” list, while the Dodge Challenger earned a spot on the list in the specialty coupe category.
       
      Chrysler Brand
      Chrysler brand sales were down 47 percent in November compared with the same month a year ago. However, the all-new Chrysler Pacifica posted sales of 8,753 units in November, a 13 percent sales gain versus the previous month of October. The 2017 Pacifica minivan – launched in April – earned Best Buy awards from Consumer Guide Automotive, Consumers Digest and Kelley Blue Book last month. In the Consumer Guide Automotive competition, the Pacifica captured both the Minivan and Family Vehicle Best Buy awards. In addition, the Pacifica earned “Best Car to Buy” and “Best Family Vehicle to Buy” designations from The Car Connection. The Chrysler 300 full-size sedan grabbed an award last month as well, earning its fifth Best Buy award in the luxury car segment from Consumers Digest.
      FCA US LLC Sales Summary November 2016
      Reflects New Methodology
                      Month Sales
      Vol %
      CYTD Sales
      Vol %
      Model
      Curr Yr
      Pr Yr
      Change
      Curr Yr
      Pr Yr
      Change
      Compass
      6,984
      9,209
      -24%
      86,107
      64,188
      34%
      Patriot
      8,568
      9,933
      -14%
      114,117
      108,968
      5%
      Wrangler
      12,957
      13,948
      -7%
      176,053
      186,835
      -6%
      Cherokee
      11,479
      18,218
      -37%
      183,356
      196,092
      -6%
      Grand Cherokee
      17,230
      17,662
      -2%
      189,023
      175,746
      8%
      Renegade
      10,067
      7,719
      30%
      94,561
      52,211
      81%
      JEEP BRAND
      67,285
      76,689
      -12%
      843,217
      784,040
      8%
      200
      2,849
      10,103
      -72%
      54,651
      157,705
      -65%
      300
      2,566
      4,635
      -45%
      49,657
      48,756
      2%
      Town & Country
      350
      12,537
      -97%
      58,805
      86,908
      -32%
      Pacifica
      8,753
      0
      New
      52,083
      0
      New
      CHRYSLER BRAND
      14,518
      27,275
      -47%
      215,196
      293,369
      -27%
      Dart
      2,203
      7,201
      -69%
      41,877
      82,041
      -49%
      Avenger
      1
      15
      -93%
      45
      1,294
      -97%
      Charger
      9,138
      6,804
      34%
      88,200
      88,323
      0%
      Challenger
      3,908
      4,297
      -9%
      59,176
      61,813
      -4%
      Viper
      62
      45
      38%
      571
      627
      -9%
      Journey
      7,133
      8,023
      -11%
      96,991
      100,256
      -3%
      Caravan
      6,696
      10,926
      -39%
      120,991
      89,833
      35%
      Durango
      4,934
      5,644
      -13%
      62,678
      56,897
      10%
      DODGE  BRAND
      34,075
      42,955
      -21%
      470,529
      481,084
      -2%
      Ram P/U
      36,885
      34,145
      8%
      441,862
      408,724
      8%
      Cargo Van
      0
      2
      -100%
      21
      2,157
      -99%
      ProMaster Van
      4,702
      2,084
      126%
      35,746
      23,658
      51%
      ProMaster City
      924
      1,721
      -46%
      14,625
      8,015
      82%
      RAM BRAND
      42,511
      37,952
      12%
      492,254
      442,554
      11%
      Giulia
      0
      0
      New
      7
      0
      New
      Alfa 4C 
      23
      34
      -32%
      457
      603
      -24%
      ALFA BRAND
      23
      34
      -32%
      464
      603
      -23%
      500
      1,147
      974
      18%
      14,026
      22,243
      -37%
      500L
      96
      231
      -58%
      3,016
      7,275
      -59%
      500X
      822
      1,621
      -49%
      10,869
      7,785
      40%
      Spider
      350
      0
      New
      2,225
      0
      New
      FIAT BRAND
      2,415
      2,826
      -15%
      30,136
      37,303
      -19%
      TOTAL FCA US LLC
      160,827
      187,731
      -14%
      2,051,796
      2,038,953
      1%
                        Total Car & MPV
      38,142
      57,802
      -34%
      545,787
      647,421
      -16%
          Total UV's
      80,174
      91,977
      -13%
      1,013,755
      948,978
      7%
          Total Truck & LCV
      42,511
      37,952
      12%
      492,254
      442,554
       
    • By William Maley
      Sales of Fiat vehicles in the U.S. have been tanking and FCA is making a drastic change to try and reverse this. Automotive News got their hands on documents revealing a new pricing structure that will see Fiat cut the prices on some of their models.
      The base 500 will see a price cut of $2,000 ($14,995 from $16,995). The price doesn't include a $995 destination charge. The big price cuts will come to the 500C lineup as there will now be a $1,495 difference between the cabrio and regular hardtop. A key example is the 500C Abarth which sees its price drop from $26,695 to $21,490 for 2017. Prices for the 124 Spider and 500X remain unchanged.
      A Fiat spokesman declined to comment.
      Source: Automotive News (Subscription Required)
      Pic Credit: William Maley for Cheers and Gears

      View full article
    • By William Maley
      Sales of Fiat vehicles in the U.S. have been tanking and FCA is making a drastic change to try and reverse this. Automotive News got their hands on documents revealing a new pricing structure that will see Fiat cut the prices on some of their models.
      The base 500 will see a price cut of $2,000 ($14,995 from $16,995). The price doesn't include a $995 destination charge. The big price cuts will come to the 500C lineup as there will now be a $1,495 difference between the cabrio and regular hardtop. A key example is the 500C Abarth which sees its price drop from $26,695 to $21,490 for 2017. Prices for the 124 Spider and 500X remain unchanged.
      A Fiat spokesman declined to comment.
      Source: Automotive News (Subscription Required)
      Pic Credit: William Maley for Cheers and Gears
    • By William Maley
      Fiat Chrysler Automobiles is going to be milking the LX platform for all its worth till at least 2020. Automotive News has learned from two sources that FCA won't redesign the Chrysler 300, Dodge Challenger, and Charger until 2021 when they will transition onto the Giorgio RWD platform. This information confirms hazy details mentioned in a contract highlighter for Unifor members in Canada. The highlighter mentions a $242 million investment into the plant at Brampton, Ontario - home of LX production - to rebuild its paint shop.
      Originally, the plan was to have the next-generation 300, Challenger, Charger out by 2019. Now with plans moved to 2021, FCA will be doing another refresh in 2018.
      The sources also mention that one of three vehicles will be discontinued in 2021, most likely the 300. 
      Source: Automotive News (Subscription Required)
      Pic Credit: William Maley for Cheers & Gears

      View full article
  • Recent Status Updates

  • Who's Online (See full list)