so the taxpayers are out another $1.3BILLION... is that it???
Posted on 01/01/2014 6:50:57 PM PST by DeaconBenjamin
Italian car manufacturer Fiat announced on Wednesday that it has reached an agreement to acquire the remaining shares of Chrysler for $3.65bn to a union-controlled trust fund.
Fiat already owns 58.5% of Chrysler's shares, with the remaining 41.5% held by a United Auto Workers trust fund that pays health care bills for retirees.
Under the deal, Fiat will make an initial payment of $1.9bn to the fund, plus an additional $1.75bn upon closing the deal.
Chrysler will also make additional payments totalling $700m to the fund as part of an agreement with the UAW. The deal is expected to close on or before 20 January, according to a statement from Chrysler.
Sergio Marchionne has long sought to acquire the union's shares in order to combine Fiat and Chrysler.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and knowhow, a solid and open organisation," Marchionne said in a statement.
The deal eliminates the need for an initial public offering of the union fund's stake, which analysts had previously valued at $5.6bn.
Marchionne cannot spend Chrysler's cash on Fiat's operations unless the companies merge. In recent months he made it clear that he preferred to settle the dispute without an IPO, but filed the paperwork for the offering in September at the trust's request.
Chrysler's profits helped prop up Fiat's balance sheet as the Italian firm struggles in the depressed European market.
The Michigan-based car company earned $464 million in the third quarter on US sales of the Ram pickup and Jeep Grand Cherokee, its ninth straight profitable quarter. The results boosted Fiat, which earned $260m in the quarter. Without Chrysler's contribution, Fiat would have lost $340m.
(Excerpt) Read more at theguardian.com ...
I wonder how much money the DNC will get out of this?
Great, so the Italians can ruin whatever the feds and Germans missed.
Great. Chrysler is now fully a foreign owned nameplate. Thanks Obama.
My neighbor traded in her Smart car for a little Fiat. I guess she likes those little clown cars.
More to the point, how much U.S. taxpayer money went into this continued destruction of American capitalism???
Remember, we Americans are being forced into feeding a Marxist agenda.
"And more importantly, we get rid of those greedy union people!"
We might build our cars in South Carolina or Georgia or Texas.
FU UAW!!!!!!
Fiat = Fix It Again, Tony.
Fiat is paying $3.65 billion to the Union trust fund. The shares were valued by analysts at $5.6 billion. How soon will it be before the union mismanages these funds, can’t make pension payments to the Chrysler workers, and comes running to the US government for a bailout because it didn’t get the full value of its shares from Fiat?
I would buy one if they were serviced by the Chrysler dealerships. They could give the Cooper Mini's a run for their money.
so the taxpayers are out another $1.3BILLION... is that it???
Uh-oh, and they’ll probably buy it with (gasp!) Fiat money!!!
Thanks DeaconBenjamin.
A laundering scheme.
They steal it from U.S. taxpayers, and give it to the “world”.
Thieving plunder.
The Chairman of the company flies to Detroit by Alitalia Airline (Always Late In Takeoff, Always Late In Arrival.)
Quit insulting clown cars....
Fiat’s FIRST move should now be to introduce the Strada small pickup to Chrysler’s US Market, under the Dodge nameplate.
Far better than the Colorado, and cheaper.
“to a union-controlled trust fund.”
I give it 5 years.
it’s a foreign company, we are down to 1.5 US companies
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