Fiat and Chrysler preparing to vote a CEO for the merged company

Article by Christian Andrei, on August 26, 2010

It seems that the financial prospect of Chrysler is intrinsically linked with Fiat, and if the partnership pushes through between them then Chrysler may come out from the fiasco with the United Auto Workers union and Fiat as its two major shareholders.

If the partnership comes through the US government and Fiat would assign a new board of directors which would be independent and not connected with either Fiat or Chrysler at present.

Then, the new board of directors will vote a CEO for the merged company.

As part of the restructuring process the investments of Chrysler's existing shareholders, Cerberus Capital and Daimler AG, are expected to be discarded.

The United Auto Workers union would become a major shareholder in the new Chrysler if it consented to exchange half of the debt of the carmaker, which currently amounts to $10 billion, into equity. Fiat will initially own 20 percent of the new Chrysler.

Then will be allowed to grow this initial stake with a series of benchmark targets for the Fiat and Chrysler partnership.

The increases will consist of 25 percent equity when the first Fiat powerplant is certified for use in the US, 30 percent when the first Fiat-based vehicle enters production in the US and 35 percent when the first Fiat-based US vehicle hits export.

If you liked the article, share on:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016