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:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 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