There goes the American Jeep.
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 ...
Engine:
Turbo 1.3L Diesel I4
Power:
94 HP / 148 LB-FT
Transmission:
5-Speed Manual
0-60 Time:
13.0 Seconds
Top Speed:
99 MPH
Drivetrain:
Front-Wheel Drive
Curb Weight:
2,833 LBS
Towing:
2,200 LBS
Seating:
2+2
Cargo:
1,400 LBS
MPG:
50 mpg (est.)
MSRP:
$16,500 (est.
On second thought, introduce it under the Jeep nameplate. Call it a Comanche, even.
America belongs to Obama. I am pulling for anyone but Obama.
I haven’t seen a Fiat (X19) on an American road since 1978..
What a loser car! A piece of junk then...and now.
Even Chrysler merging couldn’t save Fiat.
“I am not impressed with the Strada:”
Compared to the only competition, the Colorado,(now that the Ranger is gone), it would end up dominating the light truck market, especially on price.
A vehicle's value requires driving and testing and pounding.
There goes the American Jeep.
I have been thinking of buying a used Wrangler...a Fiat takeover might give me more courage.
My first car was a 1969 Fiat 124. It was actually a great little car, easy to work on, and handled like a sports car. Little things like clutch cables broke, but they were cheap and easy to replace. It was just a square little boxy four banger, but surprisingly roomy inside.
The American Jeep is a winning product. Fiat won't change it a bit.
In fact, as a retired investment banker, I can almost assure you that this transaction is dependent on keeping the Jeep product line exactly as is. The bankers are depending on it.
For the price, it looks pretty good to me.
50 mpg and decent cargo and towing. Won’t win any drag races, but I think sales volume would be really high.
Fix It Again, Tony!
Electrical fires to resume immediately, thanks Tony.
“America belongs to Obama”
That is what leftists think, at any rate.
http://www.autonews.com/article/20131007/RETAIL07/310079959/#axzz2pCy9tXPw
Fiat sales have been disappointing in the US.
The worldwide value of the Jeep brand cannot be understated.
This is why Daimler bought Chrysler originally, but the culture clash was just too great. The Magna-Steyr(WJ/WK) produced Grand Cherokee’s sell for BIG money used in Eastern Europe.
But the unions which own Chrysler are part of Obama's world.
I stand behind Fiat and against the UAW and Obama.
50 mpg and decent cargo and towing
Ditto.
If it has a traction control system and anti-lock brakes that work as well as those on our Grand Cherokee, and if the metal is well protected from rust, they have a winner I'll buy.
I've been able to take our Grand Cherokee all but 2 places we've been with our Unimog.
Including having opposite diagonal tires 4 feet in the air rock crawling.
But if they were sold and serviced at Chrysler dealerships...it would be a different story.
And after this takeover, they will...
Sounds like a piece of crap.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
