Fiat CEO hopes VEBA will sell its Chrysler stake as soon as possible

Article by Anita Panait, on February 1, 2013

Fiat chief executive Sergio Marchionne hopes that the Voluntary Employees' Beneficiary Association (VEBA), UAW retiree healthcare trust that holds a 41-percent stake in Chrysler Group LLC, would sell its holdings in the unit as soon as possible. Marchionne said that the faster the stake sale is done, the better it is.

VEBA asked Chrysler earlier this month to register 16.6 percent of its shares in the US carmaker for a future public offering, thereby building a platform from which Chrysler could publicly trade its shares in the stock market for the first time since 2007.

According to Marchionne, he would be "more than happy" to work on a successful initial public offering. He, however, said that he would prefer that Fiat will acquire VEBA’s holdings in Chrysler. Marchionne has been indicating that the Italian carmaker is interested to acquire the shares in Chrysler that it still does not own.

Fiat holds a 58.5-percent stake in Chrysler. According to figures provided by the VEBA, it needs to pay medical benefits to 121,624 retired Chrysler workers and their families, and another 40,000 employees in the future.

As part of Chrysler's bankruptcy agreement in 2009, retired Chrysler workers swapped around $7 billion of health care and life insurance liabilities for ownership in the carmaker and a promissory note for $4.8 billion. UAW Vice President and Director General Holiefield told Reuters in a recent interview remarked that the union wants to see Chrysler hold an IPO, adding that VEBA needs the right amount of finances to provide healthcare for its member retirees.

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries