Paul Goncalves, CFA • 18 Comments
Sep. 6, 2015, 3:33 PM
- Seeking a tie-up with General Motors (NYSE:GM) is a "high priority," Fiat Chrysler (NYSE:FCAU) boss Sergio Marchionne declared, adding that a merger with GM would "be the best possible strategic alternative for us and for them."
- Despite upping the deal's significance, Marchionne declined to discuss the next steps FCA might take or whether the automaker would pursue a hostile bid.
- Previously: Fiat Chrysler would be the smaller fish in potential GM deal (Sep. 04 2015)
- Previously: Sergio Marchionne fires up Fiat-GM merger talk again (Aug. 31 2015)
Sep. 5, 2015, 12:02 PM
- News in the automobile industry this week continues to indicate seismic changes are coming.
- The Silicon Valley factor: A deeper commitment by Apple and Google in the automobile sector is widely anticipated, although an all-in bet on the manufacturing side is still considered a reach. Key acquisitions, partnerships, or joint ventures in software, self-driving technology, and infotainment systems could sort out the winners from the losers. German players BMW (OTCPK:BAMXY) and Mercedes-Benz (OTCPK:DDAIF) could be in the mix.
- The Sergio factor: Though the Fiat Chrysler Automobiles (NYSE:FCAU) CEO continues to make some bold projections on the powerful merger synergies a tie-up with General Motors (NYSE:GM) would create, his math works for other combinations within the industry as well. Nissan (OTCPK:NSANY), Tata Motors (NYSE:TTM), Honda (NYSE:HMC), and Volvo (OTCPK:GELYF) are each struggling in various markets.
- The Tesla factor: Tesla Motors (NASDAQ:TSLA) has engaged in a war of words with Toyota (NYSE:TM) in the electric vs. hydrogen debate. The EV automaker is also in a race with General Motors and Nissan over developing a mass-market EV with the driving range and sticker price to sell at scale. There's also been a tug-of-war over employees with Silicon Valley counterpart Apple. With so many enemies, some analysts think Tesla needs more friends in the space. Who has the ~$40B-$50B to buy out Elon or the moxie to strike a strategic partnership?
- Looking for a wildcard? Sony (NYSE:SNE) CEO Kazuo Hirai told the Financial Times this week that his company would absolutely partner with an automobile company if a deal makes sense.
Jun. 25, 2015, 3:00 AM
- Despite calls for consolidation in the auto industry, Fiat Chrysler Automobiles (NYSE:FCAU) CEO Sergio Marchionne said his company is a long way from lobbying General Motors (NYSE:GM) to the negotiating table.
- The company's previous merger proposal to GM Chief Executive Mary Barra was rebuffed.
- Asked if he would consider an option of going hostile on the automaker, Marchionne said only that those players who kept wasting capital were acting in that manner.
Jun. 9, 2015, 2:18 AM
- Fiat Chrysler Automobiles' (NYSE:FCAU) Chief Executive Sergio Marchionne is reaching out to hedge funds and other potential allies to prod General Motors (NYSE:GM) into a merger, WSJ reports.
- Marchionne has been emboldened by recent successes of activist investors at GM and sees them as a means to consolidate the fragmented auto industry.
- So far, GM has resisted all of Fiat Chrysler's entreaties, including a merger appeal to Chief Executive Mary Barra earlier this year.
- Previously: GM passes on merger offer from Fiat Chrysler (May. 23 2015)
Jan. 6, 2015, 8:20 AM
- The spinoff of Ferrari could give Fiat Chrysler Automobiles (NYSE:FCAU) enough breathing room to seek a merger partner, according to auto industry analysts.
- The rising cost of developing clean cars in Europe and the U.S. sets the stage for automakers to join forces through mergers and extended partnerships.
- "Eventually it must happen," notes FCA chief Sergio Marchionne on the topic of mega-mergers.
- No company is too big to be ruled out of the merger discussions due to the benefits of scaling investment costs and matching strengths/weaknesses in Europe, Latin America, China, and the U.S, note insiders.
- Automakers: GM, F, TM, FCAU, HMC, OTCPK:NSANY, TSLA, OTCQX:VLKAY, OTCPK:DDAIF, OTC:HYMLF, OTCPK:BAMXY, OTCPK:FUJHY, OTCPK:MMTOF, OTCPK:PEUGF, OTC:RNSDF, TTM, KNDI. OTCPK:SZKMY, OTCPK:MZDAY.
Oct. 7, 2014, 3:22 AM
- Fiat (OTCPK:FIATY) says its merger with Chrysler will be effective as of Oct. 12 after creditors had not opposed the merger and the amount of money to be paid to shareholders that chose to sell their shares had not exceeded the €500M cap set by the company.
- Shares in the new holding Fiat Chrysler Automobiles will start trading on the NYSE on Oct. 13, under the symbol FCAU.
Aug. 29, 2014, 4:27 AM
- Fiat (OTCPK:FIATY) says it has cleared a road block for its planned reorganization, as the pay off of dissenting shareholders who were allowed to tender their shares will likely not exceed the €500M ($658.3M) set aside for the merger.
- The reorganization will create Fiat Chrysler Automobiles, a new company with headquarters in Amsterdam, domiciled in the U.K. for tax purposes and a primary stock market listing in New York.
Aug. 1, 2014, 3:52 AM
- Fiat (OTCPK:FIATY) shareholders are expected to approve a deal today over the Italian automaker's merger with its U.S. unit Chrysler.
- The merger will incorporate the two as a Dutch-registered company called Fiat Chrysler Automobiles, and will pave the way for a U.S. share listing.
- A two-thirds majority vote is needed to approve the deal.
Jul. 23, 2014, 9:58 AM
- Fiat Chrysler (OTCPK:FIATY, OTCPK:FIADF) CEO Sergio Marchionne quashes speculation of a possible tie-up with Volkswagen (OTCQX:VLKAY, OTCPK:VLKAF), saying the idea had never been on the agenda.
- A German magazine earlier this month reported VW Chairman Ferdinand Piech had held talks with Fiat owners about buying all or part of the group.
- The CEO also says he still expects to list the merged Fiat Chrysler in the U.S. in the first two weeks of October, and says Q2 results, which will be released next week, were in line with expectations.
Jul. 17, 2014, 5:54 AM
- Volkswagen (OTCQX:VLKAY) is looking into buying Italian rival Fiat (OTCPK:FIATY), German Manager Magazin reported on its website this morning.
- The publication stated that Fiat's owners want to shift their focus to the Ferrari brand and exit the traditional automotive business.
- VW is hoping to gain access to Chrysler's U.S. distribution network by the Fiat-Chrysler purchase, which would be a contributing factor in turning around auto sales.
Jan. 2, 2014, 2:40 AM
- Fiat (FIATY) has agreed to pay $4.35B to acquire the 41.5% stake in Chrysler owned by the United Auto Workers Retiree Medical Benefits Trust.
- The deal ends a long-running dispute over the valuation of Chrysler - which is just over $10B under the agreement - and helps pave the way for the consolidation of the companies into a single global automaker with combined sales of 6M vehicles and 2012 revenue of €84B.
- The transaction also means that Chrysler's prospective IPO will probably be called off. (PR)
Sep. 22, 2013, 3:31 AM
Sep. 16, 2013, 3:03 AM
- Chrysler is preparing to file for an IPO this week and could list this year, CEO Sergio Marchionne has told the FT, although the flotation is more likely to take place in Q1 2014.
- Marchionne, who's also the CEO of 58.5% Chrysler owner Fiat (FIATY.PK), said he's going to the market to determine the value of the shares held by a retirement trust, which owns the rest of the U.S. car maker.
- The trust wants $10.3B but Fiat values the holding at $4.2B. "The market will tell us. Let the market talk," Marchionne said.
- The dispute has held up the full merger of Fiat and Chrysler, although the IPO will also delay plans to streamline the two car makers and pool their resources.
May 30, 2013, 3:06 AMFiat (FIATY.PK) is reportedly in negotiations with major banks to borrow up to $10B that the Italian carmaker would use to acquire the 41.5% of Chrysler it doesn't own and refinance the two companies' debt at lower interest rates. The banks include Bank of America (BAC), Deutsche Bank (DB), Goldman Sachs (GS) (GS) and BNP Paribas (BNOBF.PK). Fiat's purchase of the holding is being held up by a legal dispute over the value of the stake. | May 30, 2013, 3:06 AM | 3 Comments
May 26, 2013, 2:59 AM
Fiat CEO (FIATY.PK) Sergio Marchionne has reportedly approached Goldman Sachs, BofA, Deutsche Bank and other banks about financing the Italian car maker's attempt to buy the 41.5% of Chrysler held by a union-run trust. The acquisition of the stake, which is worth $1.75-4.27B depending on whom you ask, would give Fiat access to Chrysler's $11.9B in cash and allow the combined company to carry out an IPO in New York.| May 26, 2013, 2:59 AM
Oct. 5, 2012, 7:35 AM
"Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe," says company exec Steve Girsky, reiterating the brand isn't for sale. Earlier, an Italian newspaper reported, talks to sell the unit to Fiat were set to restart.| Oct. 5, 2012, 7:35 AM | 1 Comment