Fiat wants to buy VEBA’s stake in Chrysler as soon as possible, CEO says

Article by Christian Andrei, on February 6, 2013

Fiat SpA Chief Executive Sergio Marchionne said that the company wants the minority holder of U.S. affiliate Chrysler Group LLC to sell out as soon as possible. With regards to a United Auto Workers union retiree healthcare trust named VEBA that owns 41% of Chrysler, Marchionne commented that it would be better the faster they get it done.

In early January, Chrysler was asked by VEBA to register 16.6% of its Chrysler shares for a future public offering. This sets the stage for the automaker to trade on the stock market once more for the first time since 2007, when it was a unit of Daimler AG. Last Wednesday, Marchionne said that he will be delighted to turn any future IPO into a success.

He said that he would want Fiat to purchase VEBA's stake in Chrysler. In the past, Marchionne said that Fiat wants to buy what remains of Chrysler. Fiat presently owns 58.5% of Chrysler. According to figures that VEBA provided, the trust has to pay medical benefits to 121,624 retired Chrysler workers and their families as well as about 40,000 more in the future.

Under Chrysler's 2009 bankruptcy deal, retired Chrysler workers exchanged around $7 billion of health care and life insurance liabilities to acquire a stake in the company as well as a promissory note for $4.8 billion.

In a recent Reuters interview, UAW Vice President and Director General Holiefield said that the United Auto Workers (UAW) union is eager to see Chrysler hold an IPO. He said that he wants to see Chrysler become public again. He added that the VEBA needs to have the right amount of funding to give healthcare to its retirees.

Topics: fiat, chrysler

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Each time that Mini launches a new generation of the Countryman crossover, a John Cooper Works performance version is always expected to follow. When Mini unveiled the next-gen 2017 Mini...
by - January 18, 2017
Ford Mustang customers won’t be able to specify the V6 powerplant for the latest iteration of the carmaker’s pony car. This comes as the new 2018 Ford Mustang is saying...
by - January 18, 2017
The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 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