/ Chrysler, Fiat, Industry, News / Fiat Chrysler five-year business plan endangered by possible merger delay

Fiat Chrysler five-year business plan endangered by possible merger delay

Linked In Share
Fiat Chrysler five-year business plan endangered by possible merger delay

The plans to make the seventh largest automaker in the world a true global player could be endangered if the long-awaited merger gets somehow delayed.

Sergio Marchionne, chief executive of both Fiat SpA and its US subsidiary Chrysler Group LLC wants to become as fast as possible the CEO of Fiat Chrysler Automobiles NV, a Dutch incorporated company with headquarters in London and stock listings in New York and Milan. But even as during an August 1 shareholders meeting the investors voted two-thirds in favor of the merger, the recent share drop, as well as the existence of dissenting investors could lead to the current plans being dropped.

The merger could be stopped because Italian law requires a formal offer to buy back stakes from dissenting investors – with a 500 million euros threshold. While the possibility would not all together scuttle the legal merger – the two companies already act as one firm – the plans to gather funds for the 48-billion euro ($64 billion) growth plan could be seriously jeopardized.

“With the share price where it is today, a delay is a possibility,” said Andrea Giuricin, a transport analyst at Milan’s Bicocca university. “If there is a delay, it would impact Fiat’s plans to lure foreign investors and ease its access to cash. Marchionne’s attempts to convince the market to the contrary show he is getting a bit nervous.”

The five-year business plan was set up with the goals of increasing five times the current profit and grow sales 60% overall, but the recent developments in many markets and Fiat’s dwindling results have triggered a huge stake slide – the shares fell to their lowest this year.

Via Reuters

by Aurel Niculescu (my Google+) - Friday, August 15th, 2014 - filed under Chrysler, Fiat, Industry, News. Image credit: .
Linked In Share
Related Articles
dissneting five-year business plan growth merger


Discuss: Fiat Chrysler five-year business plan endangered by possible merger delay

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Hamilton takes control of own management
Hamilton takes control of own managementNov.1 (GMM/Inautonews.com) Lewis Hamilton is "scaling back" his deal with Simon Fuller, the entertainment manager famed for his ...
Vettel to qualify in Austin ‘out of respect’
Vettel to qualify in Austin ‘out of respect’Nov.1 (GMM/Inautonews.com) Sebastian Vettel will make a brief appearance during qualifying on Saturday ahead of the US grand ...
Williams bosses absent from US GP
Williams bosses absent from US GPNov.1 (GMM/Inautonews.com) Williams' two F1 bosses are missing in action this weekend for the US grand prix. It has emerged ...
Susie Wolff to extend Williams deal
Susie Wolff to extend Williams dealNov.1 (GMM/Inautonews.com) Susie Wolff will extend her deal with Williams into the 2015 season, according to the German ...
Tost wants to keep Vergne at Toro Rosso
Tost wants to keep Vergne at Toro RossoNov.1 (GMM/Inautonews.com) Toro Rosso boss Franz Tost has admitted he would like to keep Jean-Eric Vergne on board for the 2015 ...
Boycott threat emerges as next teams face collapse
Boycott threat emerges as next teams face collapseNov.1 (GMM/Inautonews.com) Battle lines are being drawn as F1 reacts to the 'crisis' of collapsing teams. But Red Bull's Dr ...
Kobayashi in Austin to keep F1 dream alive
Kobayashi in Austin to keep F1 dream aliveNov.1 (GMM/Inautonews.com) Like his 2014 teammate Marcus Ericsson, Kamui Kobayashi has travelled to Austin without a formula one ...
Test Drive: Mercedes-Benz GLA 220 CDI
Test Drive: Mercedes-Benz GLA 220 CDIThe Mercedes compact family has a new member – the adventurous GLA crossover. That means the lower-end of the luxury ...
The Nurburgring has a new owner – Viktor Kharitonin
The Nurburgring has a new owner – Viktor KharitoninRussian billionaire Viktor Kharitonin has just purchased the famous German track, the Nurburgring. “The Green Hell” is where ...
Mazda2 Sedan going to Thailand Motor Show
Mazda2 Sedan going to Thailand Motor ShowMazda will be officially pulling the wraps off a new body style of the Mazda2, the Sedan, at the 2014 Thailand International ...
Mercedes-Benz CLA Shooting Brake spied once more
Mercedes-Benz CLA Shooting Brake spied once moreNew spy photos with the new Mercedes-Benz CLA Shooting Brake have surfaced and they are showing the model in question almost ...
Mercedes-Benz GLE Coupe caught on camera
Mercedes-Benz GLE Coupe caught on cameraOur spy photographers have caught on camera recently the brand new Mercedes-Benz GLE Coupe while it was being tested out. The ...
Meet Karl – Opel’s new entry-level city car
Meet Karl – Opel’s new entry-level city carThe German based automaker Opel is planning to introduce a new five-door entry-level city car, called Karl, sometimes next ...
Recall roundup: Fiat Chrysler Automobiles’ vans and SUVs for two separate problems
Recall roundup: Fiat Chrysler Automobiles’ vans and SUVs for two separate problemsFiat Chrysler Automobiles has announced two separate recalls which are covering several vans and SUVs in the United States ...
Hyundai milestone: 10 million Elantras sold
Hyundai milestone: 10 million Elantras soldThe South Korean based automaker Hyundai has officially announced the selling of over 10 million units of the popular Elantra ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Mercedes_GLA_DSC9359
Spy-Shots of Cars
Spy-Shots of Cars
Spy-Shots of Cars
BMW M4 Special Edition GTRS4 by Vorsteiner going to SEMA 1
ferrari laferrari for sale dubai 1
custom scion fr-s 2014 sema motor show 1
AeroMobil 3.0 flying car 1
audi a4 20th anniversary 1
Five customized Ford Transits going to SEMA 1
Toyota FCV Rally Car 1
2016 honda civic type-r 2

More automotive from inautonews
The Mercedes compact family has a new member – the adventurous GLA crossover. That means the lower-end of the luxury automaker’s lineup consists of the A, B, CLA and GLA models. No wonder the German carmaker has achieved spectacular sales results lately. Back in 2005, Mercedes lost its ...
read more
Inautonews Editors Section
Test Drive: Mercedes-Benz GLA 220 CDI
Test Drive: Mercedes-Benz GLA 220 CDIThe Mercedes compact family has a new member – the adventurous GLA crossover. That means the lower-end of the luxury automaker’s lineup consists ...
Test Drive: Dacia Sandero Stepway 1.5 90 HP
Test Drive: Dacia Sandero Stepway 1.5 90 HPIf you live in Europe, you don’t need an introduction to Dacia anymore – this is the affordable Renault subsidiary that rocked the auto industry ...
Test Drive: Mercedes-Benz A180 CDI AT
Test Drive: Mercedes-Benz A180 CDI AT The new generation of the A-Class has been around since 2012 and its overall design is quite drastic, considering its predecessor. Now, two years ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Fiat Chrysler Automobiles’ vans and SUVs for two separate problemsFiat Chrysler Automobiles has announced two separate recalls which are covering several vans and ... Recall roundup: Ford Edge and Lincoln MKXFord has issued a recall for several Edge and Lincoln MKX vehicles because of a problem with ...
Safety Section