GM’s IPO is a great precursor for Chrysler’s planned share sale, says Marchionne
By Andrew, 19 Nov, 2010. 0 Comments
Sergio Marchionne
Chrysler CEO Sergio Marchionne considers General Motors Co.'s IPO to be a “great, great precursor” for Chrysler Group’s own planned share sale. At the launch of Chrysler's flagship showroom in downtown Los Angeles, Marchionne said that GM’s IPO will let the company know what the market wants, and will give an idea with regards to pricing expectations. Marchionne said the strong take-up for GM's IPO will not affect the timing of Chrysler's public debut, which is set for the second half of 2011. Chrysler was on the verge of being liquidated in 2009 before a US government-funded bankruptcy cut its operating costs and handed majority ownership to a union-affiliated trust fund and management control to Fiat S.p.A. Marchionne, who is also CEO of Fiat, asserts that Chrysler, which now has 52,000 employees from less than 40,000 a year and a half ago, said that the impact of the added manpower is far-reaching in the economy. [via autonews - sub. required]
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