Fiat is now the proud owner of VM Motori after acquiring the remaining 50 percent of the diesel engine maker from General Motors for $47.1 million.
The first half of VM Motori was purchased by Fiat in 2010, with GM exercising a put option to purchase the remaining half. VM Motori now supplies diesel engines for the forthcoming Jeep Grand Cherokee and Ram 1500 EcoDiesel – an engine originally developed for the European Cadillac CTS.
The UAW has enlisted the help of the German IG Metall labor union in its effort to organize Volkswagen’s U.S. operations. Now Fiat has apparently gotten the union that represents its Italian workers, Fim Cisl, to reach out to UAW officials in an effort to resolve the issue of just how much Fiat is going to pay the UAW’s retiree health benefits trust for the 41.5% of Chrysler the VEBA owns. Fiat and Chrysler CEO Sergio Marchionne wants to merge the two companies and that can’t be done without buying that stock. Fiat and the VEBA sides are more than a billion dollars apart. (Read More…)
Fiat will have almost a year to negotiate a price for the 41.5% of Chrysler that is owned by the UAW employee health benefits trust. That’s because the Delaware Court of Chancery set a date in September of 2014 for the lawsuit Fiat has filed against the trust, known as VEBA, to determine the sale price.
Nothing is more American than the pickup truck. If the stars and stripes thing ever gets old, they will probably get replaced by a RAM / GM / Ford montage. The other thing that’s quintessentially American is an arms race. No, I’m not talking military hardware, I’m talking about the eternal RAM vs Chevy/GMC vs Ford tuck wars. Who has the best frame? Who has the best engine? Who can haul the most? Be prepared to draw your weapons and click past the jump. Chrysler sent me a 2013 RAM 3500 for a week and then invited me to taste test the refreshed 2014 model for a day.
Fiat’s recent North American downturns have caught the attention of many automotive industry observers, particularly those who never believed Fiat had a high-volume future on this side of the Atlantic.
There’s no better way to keep brand volume high than by introducing new models. Consider the new CLA250, which helped Mercedes-Benz to a 6.6% year-over-year increase in September. Without the CLA, Benz volume was down 3.3%.
I have driven more cars than I can count this year but strangely enough, none of them excited me as much as the Fiat Ducato we had in July. Why? Well, my snazzy new retaining wall that arrived pallet-by-pallet in the Ducato certainly helped, but the real reason is: the Ducato serves as the basis for the 2014 RAM ProMaster. Yes, I know I have an odd place in my heart for commercial cargo haulers, but hear me out. The ProMaster quite simply the biggest thing to happen in the commercial world in my lifetime. The only thing that could have surpassed the intrigue of a front-wheel-drive cargo hauler would be a front-wheel-drive BMW M5. I know Europeans have had these things for a while, but let’s revel in the American novelty as we click past the jump.
Much has been made over the one future product announcement in Chrysler’s IPO filing. Apparently, it will be a an SUV based off of the Small Wide platform. A bit of detective work can help us figure out what it will be.
After Fiat and Chrysler’s retired UAW workers’ health care benefits trust were unable to agree on a price for the Voluntary Employees Beneficiary Association‘s 41.5% share in the Auburn Hills automaker, at the trust’s request Chrysler has filed initial paperwork for a public stock offering to sell part of the VEBA’s stake, about 16% of overall Chrysler shares, the first time in over a decade that the public will be able to own shares in Chrysler, which formerly was wholly owned by Cerberus and before that Daimler. Fiat certainly would rather the IPO not take place now as it complicates Fiat and Chrysler CEO Sergio Marchionne’s plans for the Italian automaker to acquire full ownership of Chrysler. The benefits trust has the legal right to force Chrysler to make the stock offering so the VEBA can cash out on the shares it received in exchange for giving up financial claims against Chrysler during the company’s bankruptcy and bailout by governments in the United States and Canada.
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Ownership of VM Motori, the Italian maker of the V6 diesel engines offered in the Jeep Grand Cherokee and Ram 1500, is currently split 50/50 between General Motors and Fiat. But according to Automotive News, Fiat is looking to buy the other 50 percent, completing its ownership stake.
On Friday, Sergio Marchionne, who heads Fiat and Chrysler, told reporters in Milan, Italy that he hasn’t gotten any closer to making a deal with the UAW’s retiree health care trust for Fiat to purchase the VEBA’s shares in Chrysler and take full ownership of the Auburn Hills automaker. The UAW health care trust owns 41.5% of Chrysler and the two parties have not been able to agree on a price. The trust is demanding $5 billion for its shares. Marchionne told the LaPresse news agency, concerning the UAW trust’s suggested price, “They should buy a lottery ticket.” (Read More…)
I have to admit, I’m a fan of the Fiat 500. Yes, I know it’s just a Fiat Panda with bubbly sheetmetal. Yes I know it’s a little peculiar. Yes I know it’s trying to ride on MINI success. It doesn’t matter, the wee Fiat makes me grin every time I drive one. Whether it’s the slow-as-dirt standard 500, the ludicrously loud Abarth, the almost-convertible 500c or the totally impractical 500e, the Cinquecento knows how to brighten my day. I was therefore excited when Fiat announced the 500’s success would spawn a four door stable-mate for 2014. Is the 500L 40% more smiles for 20% more cash?
Another day, another flip-flop on future product plans over at Casa di Marchionne. The latest news comes from Italian unions, who claim that the Maserati Levante will be built at the Mirafiori plant in Italy, rather than at Jeep’s plant in Detroit.
You may recall that the possibility of building Jeeps in China (something that actually started decades ago when the brand was owned by American Motors) became an issue in last year’s U.S. presidential election campaign. According to reports in Chinese media, the Fiat and Guangzhou Automobile groups have reached a tentative agreement to assemble Jeeps in the companies’ joint venture Changsha factory in central China. (Read More…)
We had an orange ’78 X1/9 Junkyard Find yesterday, so let’s stay in the Microsoft Windows Hot Dog Stand color range and follow up that Fiat with another ’78. This car is also a Denver find, though not at the same junkyard as the orange car. (Read More…)
Sergio Marchionne’s plans to merge Chrysler and Fiat have been delayed because Fiat failed to convince a Delaware Chancery Court judge to set the value of Chrysler stock owned by the UAW’s health care fund known as VEBA. Judge Donald Parsons rejected Fiat’s request to find that a call-option agreement covering at least 54,000 Chrysler shares valued the stock at slightly less than $140 million. That decision means that the dispute over the shares’ value will now proceed to trial. (Read More…)
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