Fiat, which is currently in the full process of merger with its US subsidiary Chrysler, is also preparing for the new company’s listing on the New York Stock Exchange, which could be a bumpy road.
Fiat SpA, the parent company of Chrysler Group LLC has so far only traded its stock in Milan, in the home country of Italy. But, as the new Fiat Chrysler Automobiles NV emerges as a bigger scope global company, the group desperately needs to be available on the critical Wall Street to secure further funding for the expansion plans it has.
Fiat said its merger to Chrysler should be completed by the year’s end, while the New York listing is prepared for October – which is the main venue where FCA chief executive Sergio Marchionne expects to get the necessary funding for its five years business plan that should bring a 500% gain on net profit and increase total sales by 60% by 2018 – all with a forecasted spending cost of no less than 48 billion euro ($65 billion).
“If you want to play the U.S. car market, you either buy GM or you buy Ford or you buy us,” said Marchionne. “We are the only other true proxy to the U.S. market.”
The only problem for the new company – Fiat’s sister company CNH Industrial, a maker of trucks and tractors, which was listed on Wall Street last year – was met with little interest, so far in eight months investors only acquire around 100,000 shares per day. On the other hand, Milan’s average trading of Fiat SpA is usually around 30 times better.
Via Automotive News Europe
by Aurel Niculescu
) - Monday, June 30th, 2014 - filed under Chrysler
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