Continuing the crack down on foreign automakers in China, anti-monopoly regulators have fined a Chinese Volkswagen (OTCQX:VLKAY) joint venture $40.6M for fixing prices on vehicles and parts with dealers. A local arm of Fiat (OTCPK:FIATY) was also fined.
The probes from Chinese antitrust officials are part of a broader investigation taking place across many industries in the country. China's regulators say the recent investigations will widen market access for foreign firms and increase transparency.
Paying for Fiat's five-year, €48B ($64B) growth plan could be a challenge. Marchionne says a decision on a capital increase will be made in October after the new FCA shares are trading hands.
What to watch: Chrysler has had strong sales in the U.S. this year and is tipped by Kelley Blue Book to show double-digit growth for August. Automobile industry analysts think the NYSE listing could provide another jolt for the brand and help reinforce the trend of the Big Three (GM, F) out-performing some foreign automakers (Volvo, Volkswagen, Hyundai) unable to compete at scale.
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.
Kelley Blue Book forecasts U.S. auto sales will fall 1% in August to 1.49M units.
The decline is attributable to a difference in selling days during the period compared to last August.
All segments are expected to see lower sales totals except for compact SUV/crossover which is tapped for a 6.2% gain.
KBB sales forecast by manufacturer: General Motors (NYSE:GM) -1.0% to 273K; Toyota (NYSE:TM) -4.6% to 221K; Ford (NYSE:F) -1.5% to 217K; Chrysler (OTCPK:FIATY) +11.1% to 184K; Honda (NYSE:HMC) -8.1% to 153K; Nissan (OTCPK:NSANY) +1.2% to 122K; Hyundai (OTC:HYMLF) -1% to 117K; Volkswagen (OTCQX:VLKAY) -11.6% to 51K.
Fiat S.p.A. Torino is the holding company of the Fiat Group. Through its subsidiaries, Co. is engaged principally in the manufacture and sale of automobiles, commercial vehicles and agricultural and construction equipment. Co. is organized into operating sectors, divided in the two major...More