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Fiat agrees to buy up rest of Chrysler

Just seen this:

BBC News - Fiat agrees to buy up rest of Chrysler

I notice the BBC get a bit wrong about the $700m, Chrysler will pay it to the VEBA not Fiat as Bloomberg correctly report:

http://bloomberg.com/news/2014-01-01...lion-deal.html

Last edited by Alf M.; 01-01-14 at 21:57.
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Makes perfect sense as its a cheap entry for their European portfolio of car companies... .....warren buffett would be proud of them.
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Finally, finally, FINALLY!!!! Now Marchionne has the cash to release some new Alfas!!! Maybe this means we might even see a new mainstream Alfa in 2014? (Here is hoping)
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YAY, now hopefully we will get some good news over the next few months
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About time, hopefully new models soon.
 
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Make no mistake this is the best news for Alfa for years. Now they need to get their fingers out!!

Fiat to acquire remaining Chrysler share | Autocar

Fiat agrees to buy remaining Chrysler stake in $4.35 billion deal
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Agreed - long way to go though.
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Quote:
Originally Posted by New York Times
The agreement to pay $1.75 billion to the U.A.W. means that Fiat will have paid a total $3.7 billion to acquire Chrysler,
much less than the $36 billion Daimler-Chrysler paid for the company in 1998
or the $7.4 billion Cerberus Capital Management paid to acquire an 80 percent stake in 2007.
Even with having to literally pay-off the union: bargain!

Where does the combined Fiat/Chrysler sit in the manufacturer's league?
3rd largest?
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Quote:
Originally Posted by Tippecanoe View Post
Even with having to literally pay-off the union: bargain!

Where does the combined Fiat/Chrysler sit in the manufacturer's league?
3rd largest?
It certainly looks like Marchionne "won" the battle with VEBA re valuation

I believe it will be 6 or 7th largest?
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I thought they were about to do something. Fiat has been buying a lot of dollars with Euros lately..

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Wow, potentially great news for Alfa. Marchionne has pulled off a great business coup, now FGA have to deliver on a product plan to match this.
 
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Heres a question,

would you prefer Alfa to remain true to its roots but slowly die

or

Become an also-ran, reasonably boring car manufacturer but continue to live
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Perhaps it will turn out that Marchionne actually knew what he was doing!
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Fantastic news for Alfa... The product plan was there, but while the cost of acquiring Chrysler remained unknown, FIAT couldn't make any other large investments.

With the two companies combined, FIAT gets Chrysler's cash reserves too, so from one point of view, the VEBA payment was made with Chrysler's money, not FIAT's.

Quote:
Originally Posted by Greener123 View Post
Heres a question,

would you prefer Alfa to remain true to its roots but slowly die

or

Become an also-ran, reasonably boring car manufacturer but continue to live
Those are not the only options. With the money FIAT can now spend on Alfa, you can also choose "remain true to its roots and continue to live", and remember that Alfa, Maserati and Jeep are the major investment targets in the group, because they have the greatest potential for growth
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I hope your right, Macchione (whatever his name is) does seem to want to keep Alfa "special" in that he has rejected many designs for the Guilia becuase they were boring.

fingers crossed
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Quote:
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I hope your right, Macchione (whatever his name is) does seem to want to keep Alfa "special" in that he has rejected many designs for the Guilia becuase they were boring.

fingers crossed
Marchionne is a shrewd businessman but I would not trust him in the style stakes: he admitted it was his idea to implement the cheap headlights on the 4C in order to save 4 million euros. If similar cost cutting measures are to be expected in the other models then that is not necessarily the best thing.

Having said that, after the commotion the controversial 4C lights caused he may have learnt his lesson i.e. you can only save money in the components that are not visible.
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I don't think anyone who wanted, and was prepared to buy, a 4c has not purchased one just because of the lights.

Against that, 4 million is a lot of money on a car you'll only make 4,000 of every year. Once you've added margins, dealer mark up, VAT and other registration taxes, Sergio's horrible lamps could have saved you over £1500... There were two important targets for 4c: weight, and final cost. Going with custom lights would have broken the cost goal.

As the 4c is completely backordered for the foreseeable future, I think Sergio was right in thinking that the lights wouldn't harm sales, even if I agree with you that the lights could be nicer looking.
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Great news, and just look how many people think Marchionne is a great guy (now)
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Reading the last bits of the article it doesnt seem all is a rosey as we think, they seem to suggest that although the revenues from crysler will help significantly it doesnt see that FIAT can plough it all into development for new models, especially since it is ow $10bn in debt!
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The same "critics" said the merger would never work when it was announced in 2008, and are hell bent on sniping at the whole thing.

And I think Fiat should be given some credit on saving Chrylser, rather than...

"Chrysler has been doing well of late, having been rescued by the Obama government,

(from the BBC, quoting an "expert")
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The so-called experts aren't called analysts for no reason.
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Analysts aren't impartial. If you advised clients last month to skip on FIAT because you think the deal wouldn't go through, you can't turn around and say it's the best thing ever today.

Worse, if your employer (or its investment arm) has taken a position that requires a company's stock to fall in value, you're less likely to give a quote that talks up that company's prospects.
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The guy quoted is an academic rather than a capital A Analyst of the investment type.

Whilst it's nice to see this as good news for Alfa the reality is that this is about making Fiat Spa a global player in the continuing consolidation of the global automotive industry and Alfa may or may not be an integral part of that. First priority is going to be integration which is a huge task.


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Alfa has a little bit more "brand value" than FIAT . The cars should be able to command a premium more easily ItalBrand Top 100 Italian Brands - 2010 (MPP Consulting) | Ranking The Brands
Judging from the BMW dealer deposit contributions advertised for pcp deals in the local paper there are companies really fighting .
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