Yesterday, the newly merged seventh-largest global automaker Fiat Chrysler Automobiles started its share trading on the New York Stock Exchange – its primary listing venue and on the Milan bourse.
On Wall Street, the new automaker made history, trading from now on under the symbol FCAU. The company aims to attract investors to the trans-Atlantic group, a company with Dutch registration, tax listing and global headquarters in London and dual share trading.
So far, after just one day of trading, investors don’t seem fully enlightened about the carmaker, with FCAU opening at $9 a share, jumping to $9.55, then dropping as low as $8.84 and settling at the close for $8.92.
“Today marks the beginning of our journey as one global automaker, one FCA,” said CEO Sergio Marchionne in a statement ahead of the big opening day.
And, over the course of the weekend, the architect of the five-years in the making unification, also showed some humorous concern: he offered to those interested a “SWAG” guess. That means “scientific wild-ass guess,” adding the believed the company would be OK in the “medium to long-term.”
Analysts point out that Chrysler’s outstanding performance on the US market could be overshadowed by parent Fiat’s numerous problems: it’s challenged at home in the European region, lacks a good Chinese market penetration and traditional strongholds (such as Brazil) have now proven to be very weak.