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Marchionne targets Chrysler IPO in second half of 2011

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Marchionne targets Chrysler IPO in second half of 2011

Fiat stake in Chrysler could grow to 35%

Luca Ciferri

Automotive News -- September 16, 2010 - 9:59 am ET

“I don't think it's the first part; I think it's a second-part-of-the-year event,” Fiat and Chrysler CEO Sergio Marchionne told reporters today when asked when in 2011 a Chrysler share sale would take place.

TURIN, Italy -- Fiat and Chrysler CEO Sergio Marchionne said today the Italian automaker could increase its stake in the U.S. automaker from the current 20 percent to 35 percent by the end of next year and that Chrysler plans to launch its public stock offering by the end of 2011.

Earlier this week, he said the IPO would take place in 2011, but wasn't more specific.

“I don't think it's the first part; I think it's a second-part-of-the-year event,” Marchionne told reporters today when asked when in 2011 a Chrysler share sale would take place.

Talking to reporters here on the sidelines of the Fiat shareholders' meeting that approved the spinoff of the Iveco heavy truck and Case New Holland farm and construction equipment units from Fiat Auto, Marchionne said Fiat could get an additional 5 percent of Chrysler by year end.

“With the start of production of the Fiat 500 in December, we are fulfilling the first of our three obligations to grow our stake to 35 percent,” he said.

Historic reorganization

Marchionne added that he is not particularly worried about when Fiat receives its three additional installments of Chrysler equaling 5 percent each.

“What is important to me is to reach the goals we are set [on] reaching; share transferring is just a consequence of the fulfilling of our obligations with the U.S. and Canadian governments,” he said.

Marchionne looked tired as he flew during the night from Chrysler's dealer convention in Orlando, Fla., to Turin.

“I just had two hours of sleep,” he said, adding that he was pleased with dealer feedback.

“In my career, I never experienced such a level of enthusiasm from a dealer body,” he said.

The Iveco and Case New Holland separation allows Marchionne, 58, to focus on carmaking and gives Fiat an entity to facilitate future alliances.

The spinoff, the most sweeping corporate reorganization in Fiat's 111-year history, will resolve an issue that's been a “thorn in the side” for Italy's largest carmaker, Marchionne told shareholders today.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100916/OEM/100919893/1250#ixzz0zhkeFba8

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Report: Marchionne predicts Chrysler IPO in second half of 2011

by Jonathon Ramsey (RSS feed) on Sep 16th 2010 at 3:58PM

The timeline for Chrysler's IPO is gradually coming into focus. Four months ago Fiat CEO Sergio Marchionne said he expected to Chrysler's offering to happen "probably" in 2011. Now he's narrowed that down to becoming "a second-part-of-the-year event."

The timing makes all kinds of sense: not only does Marchionne not expect a profit this year, the results of Fiat's integration with Chrysler won't begin to bear fruit until the middle of next year, after the 500 has gone on sale and had a few months to find its feet. By then, the company might also have some better news to report about 2011's finances. Frankly, we wouldn't be surprised if it didn't happen until early 2012. And speaking of the 500, when it starts rolling in, Fiat will be able to claim another five percent of Chrysler, taking its stake to 35 percent.

link:

http://www.autoblog.com/2010/09/16/report-marchionne-predicts-chrysler-ipo-in-second-half-of-2011/

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MARCHIONNE TARGETING LATE 2011 IPO FOR CHRYSLER

By Drew Johnson

With Chrysler’s new product rollout now underway, Chrysler CEO Sergio Marchionne is confident that the automaker will be on track for an initial public offering sometime during the second half of 2011.

Marchionne had previously been vague about a possible timeframe for a Chrysler IPO, but the automaker’s leading man revealed on Thursday that the latter half of 2011 is the company’s target. “I don't think it's the first part; I think it's a second-part-of-the-year event,” Marchionne said.

In addition to a timeframe for Chrysler’s IPO, Marchionne revealed Fiat could up its stake in the Michigan automaker to 35 percent. Fiat current owns 20 percent of Chrysler. “With the start of production of the Fiat 500 in December, we are fulfilling the first of our three obligations to grow our stake to 35 percent,” he said.

Marchionne also reaffirmed that the Alfa Romeo brand would returning to the United States in 2012.

link:

http://www.leftlanenews.com/marchionne-targeting-late-2011-ipo-for-chrysler.html

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Chrysler CEO Sergio Marchionne says share sale likely in '11

He says Fiat to raise stake

BY TOMMASO EBHARDT and MARCO BERTACCHE

BLOOMBERG NEWS

TURIN, Italy -- Chrysler CEO Sergio Marchionne said the automaker will probably sell shares publicly in the second half of 2011 after investors approved Fiat's plan to spin off its non-automotive industrial business.

"I don't think it's the first part; I think it's a second-half year event," said Marchionne, who is also CEO of Fiat, which owns 20% of Chrysler.

The remarks came as General Motors, which also received a taxpayer bailout last year, is seeking to raise at least $10 billion through an initial public offering. Marchionne also said Thursday that Fiat will raise its stake in Chrysler to 25% as soon as December.

"People aren't focusing on Chrysler as the company that needs an IPO to pay back the government money," said Rebecca Lindland, an analyst at IHS Automotive in Lexington, Mass. Marchionne's "public discussion of an IPO could backfire because it will remind people that Chrysler did take government money."

Chrysler's largest shareholder is the UAW's retiree health-care trust, which holds about 67%. The remaining 13% is held by the U.S. and Canadian governments. Marchionne aims to increase Fiat's stake to 35% by the end of 2011.

Shareholders approved Fiat's plan to separate CNH Global, Iveco and some industrial and marine operations into a new company called Fiat Industrial. The separation will leave Fiat Auto and luxury brands Ferrari and Maserati in a more focused automaker.

Read more: Chrysler CEO Sergio Marchionne says share sale likely in '11 | freep.com | Detroit Free Press http://www.freep.com/article/20100917/BUSINESS01/9170315/1331/Business01/Chrysler-CEO-Sergio-Marchionne--says-share-sale-likely-in-11#ixzz0zn3m6wmJ

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Marchionne targets Chrysler IPO in second half of 2011

Luca Ciferri

Automotive News Europe -- September 17, 2010 06:01 CET

TURIN, Italy -- Sergio Marchionne said Fiat could increase its stake in Chrysler from the current 20 percent to 35 percent by the end of next year and that Chrysler plans to launch its public stock offering by the end of 2011.

Earlier this week, he said the IPO would take place in 2011, but wasn't more specific.

“I don't think it's the first part; I think it's a second-part-of-the-year event,” Marchionne, who is CEO of Fiat and Chrysler, said on Thursday when asked when in 2011 a Chrysler share sale would take place.

Talking to reporters here on the sidelines of the Fiat shareholders' meeting that approved the spinoff of the Iveco heavy truck and Case New Holland farm and construction equipment units from Fiat Auto, Marchionne said Fiat could get an additional 5 percent of Chrysler by year end.

“With the start of production of the Fiat 500 in December, we are fulfilling the first of our three obligations to grow our stake to 35 percent,” he said.

Historic reorganization

Marchionne added that he is not particularly worried about when Fiat receives its three additional installments of Chrysler equaling 5 percent each.

“What is important to me is to reach the goals we are set [on] reaching; share transferring is just a consequence of the fulfilling of our obligations with the U.S. and Canadian governments,” he said.

The Iveco and Case New Holland separation allows Marchionne, 58, to focus on carmaking and gives Fiat an entity to facilitate future alliances.

The spinoff, the most sweeping corporate reorganization in Fiat's 111-year history, will resolve an issue that's been a “thorn in the side” for Italy's largest carmaker, Marchionne told shareholders.

A story to tell

Marchionne acknowledged Chrysler had been silent with its dealers in the past 16 months, “but when we had 16 products to show, we did it."

He added that the 2012 Viper was the fruit of the “incredible commitment in doing things I found at every level of the Chrysler organization."

Marchionne also said the Fiat 500 electric model, due in 2012, will be sold in Canada and Mexico as well as the United States.

Mexico and Canada also will get Alfa Romeo, Fiat's sporty brand, which is re-entering the U.S. market in late 2012 through selected Chrysler dealers, he said.

Asked about the status of negotiations with Volkswagen AG on the possible sale of Alfa Romeo to Europe's largest automaker, he reiterated selling the brand is not on his plans.

“I did not knock the door for Alfa. Someone else did,” he said, adding that “what VW does is not our business."

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100917/COPY/309169951/1250#ixzz0znXdowa9

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