Italy’s Fiat SpA, which these days is completing its merger with US automaker Chrysler Group LLC, is planning an asset sales valued at around 602 million euros ($820 million).
The sale is planned to boost the cash income, as the newly merged company, called Fiat Chrysler Automobiles NV is planning a large expansion of its car sales and profit over the next five years.
Chief Executive Officer Sergio Marchionne, talking to reporters yesterday in Basildon, England, announced that Fiat wants to offer to American investors a 3.5 % treasury holding and a 2.5 % stake in CNH Industrial NV, as the automaker moves for an upcoming New York stock exchange listing at the beginning of October. He added that Chrysler return from bankruptcy is adamant to what the new automaker can do further on.
“The Chrysler story is one investors have followed from the beginning,” he said. “We were the poor kids, Cinderella at the ball. People in the U.S. actually like that. They like what happened. We paid all the money back and it was clean.”
Marchionne wants both Fiat and the CNH Industrial business – which manufactures New Holland and Case tractors besides Iveco commercial vehicles – already listed in New York, need to work to increase cash liquidity.
The increase is needed to fund the recently revealed five-years business plan, which includes a huge expansion for what is now the seventh largest automaker in the world – including a return to profit in Europe by relying on the upscale brands a continuation of the increase in sales for the US brands.