Monday night, September 23rd, Chrysler filed for an IPO, part of an endless war between its shareholders Fiat and VEBA.
Chrysler, which is currently the third largest automaker in the US, was among the automakers which have been rescued by Obama administration back in 2009. The US automaker filed its S-1 documents with the US Securities and Exchange Commission yesterday, September 23rd.
The move is not one supported by Chrysler’s CEO Sergio Marchionne who will rather see the US automaker and Fiat merged as soon as possible. Fiat needs Chrysler as the crisis-hit auto industry in Europe shows no sign of improvement and customers continue to stay away from big ticket items purchases. Chrysler’s profits are impressive as the automaker keeps increasing in the US and demand for its Jeep Grand Cherokee is still high.
“It’s a very, very high stakes battle going on here,” said Harley Shaiken, an industry professor at the University of California-Berkeley. “Both sides are being quite strategic… The union took a very high risk when it accepted shares in a bankrupt company four years ago to cover healthcare for retirees. Now they want to share in Chrysler’s success.”
Fiat and VEBA could not agree on a price for the UAW’s stake in Chrysler. The Italian automaker is willing to offer $3 billion which is way under VEBA’s expectations.