Chrysler Group LLC amended its initial public offering registration statement on October 27,2013, adding details and modifying some characterizations. Some of the modified details include the deletion of the term “successful” in the company’s history of product introductions, as well as the inclusion of the fact that it started shipping the 2014 Jeep Cherokee to dealers in late October.
Chrysler also added definitions of certain terms like “new” or “significantly refreshed,” and provided data to illustrate improvements in production quality. Chrysler also said in the filing that it saved around $450 million through joint purchasing with its majority shareholder Fiat SpA, which was “slightly lower” than estimated in its 2010-2014 business plan.
Chrysler-Fiat chief executive Sergio Marchionne has been working to merge the two carmakers to create a company large enough to compete globally against big automakers like Toyota Motor Corp, General Motors Co., and Volkswagen AG.
Fiat currently holds a 58.5-percent stake in Chrysler and is aiming to buy the rest from the UAW's retiree health-care trust, VEBA. With the IPO filing, Marchionne finds himself leading a company opposed to the listing move of another firm in which he is also the top honcho.
Chrysler has acknowledged Marchionne’s awkward role in the share sale preparation, saying in the IPO statement that the CEO and other executives “may have conflicts of interest with respect to matters involving both companies.” VEBA managed to force the IPO filing in September, a move that could help resolve a row between the trust and Fiat over Chrysler’s true value.