Reuters - A growing team of Fiat SpA executives and engineers has been working at Chrysler's Detroit-area headquarters this week, finalizing plans to cut costs and ready the Fiat 500 small car for the U.S. market, people with knowledge of the work said.
DETROIT (Reuters) - A growing team of Fiat SpA executives and engineers has been working at Chrysler's Detroit-area headquarters this week, finalizing plans to cut costs and ready the Fiat 500 small car for the U.S.
The rumor mill was in full swing today after a report in German business publication “Manager Magazin” said that the family controlling Fiat SpA (FIATY) was engaged in talks with Volkswagen AG (VLKAY) to discuss a possible merger deal.
Fiat SpA appears to has cleared the last major hurdle to finalizing its merger with Chrysler Group LLC, but weak sales in recessionary Brazil could weigh on the combined company’s stock when it begins trading in New York next month.
“The operating business is a little bit of a concern at the moment because one of Fiat’s most important markets is deteriorating quite significantly,” said Sascha Gommel, automotive analyst at Commerzbank in Frankfurt, referring to Brazil.
Fiat SpA (FIATY) announced yesterday, that it had struck a $4.35 billion deal to purchase the remaining 41.5% stake in Chrysler Group LLC from the United Auto Workers’ (UAW) Retiree Medical Benefits Trust. The move puts Fiat in full control of Chrysler and effectively ends all plans for the carmaker’s initial public offering, which was expected to go ahead in the coming months.
NEW YORK — Chrysler Group LLC has added four banks to help underwrite its proposed initial public offering, as the U.S. automaker looks to launch the deal as soon as early December, according to people familiar with the matter.
Barclays Plc, Goldman Sachs Group, Morgan Stanley and UBS AG have been appointed as bookrunners in the offering, which is being led by JPMorgan Chase & Co and Bank of America Merrill Lynch, the people said on Wednesday.
The IPO could price in December, the people said, declining to be identified because the information is private.