/ Chrysler, Fiat, News / Marchionne: Fiat may sell Magneti Marelli to buy remaining Chrysler shares

Marchionne: Fiat may sell Magneti Marelli to buy remaining Chrysler shares

Linked In Share
Marchionne: Fiat may sell Magneti Marelli to buy remaining Chrysler shares

Fiat may sell its components unit Magneti Marelli to obtain additional cash it needs to acquire more of Chrysler Group, CEO Sergio Marchionne announced.

The CEO of both Fiat and Chrysler said at a news conference the Italian carmaker has no need to borrow or appeal to equity markets to raise cash to buy remaining Chrysler shares. Fiat owns a controlling stake of 58.5 percent of the third-largest U.S. automaker.

Marchionne said that, while Fiat has enough cash available, it could raise even more money if necessary by selling assets. He said one of the assets that could be sold is Magneti Marelli, a company that had revenue of €5.8 billion ($7.6 billion) last year.

Given the current weak economic environment, “the availability of cash is crucial. It’s better to be safe than sorry,” Marchionne was quoted as saying by Reuters. Magneti Marelli designs and builds automotive components including lighting, electronics, suspension and exhaust. The Company has about 35,000 employees worldwide.

Fiat is currently undergoing negotiations with an UAW union trust fund for the acquisition of the remaining 41.5 percent of Chrysler shares that the fund owns. The trust fund, which pays medical benefits to retired workers, acquired the shares during Chrysler’s 2009 bankruptcy and bailout.

by Dan Mihalascu (my Google+) - Friday, December 14th, 2012 - filed under Chrysler, Fiat, News. Image credit: .
Linked In Share
Related Articles
auto parts auto parts industry auto parts manufacturers Chrysler chrysler group chrysler shares Fiat fiat-chrysler health care trust fund magneti marelli negotiations Sergio Marchionne trust fund uaw UBS united auto workers


Discuss: Marchionne: Fiat may sell Magneti Marelli to buy remaining Chrysler shares

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!

Mercedes points at disc supplier as Hamilton crashes
Mercedes points at disc supplier as Hamilton crashesJul.19 (GMM/Inautonews.com) Just when it had got back on track, Lewis Hamilton's championship campaign spun off the road once ...
2015 Williams seat ‘not realistic’ – Wolff
2015 Williams seat ‘not realistic’ – WolffJul.19 (GMM/Inautonews.com) Susie Wolff admits expecting to land a race seat for 2015 is "not realistic". After breaking down ...
Empty track leaves F1 at ‘five minutes to 12′ – Lauda
Empty track leaves F1 at ‘five minutes to 12′ – LaudaJul.19 (GMM/Inautonews.com) Niki Lauda wants formula one to think urgently about what is turning off the fans in 2014. Big ...
Russia GP plays down plane crash doubts
Russia GP plays down plane crash doubtsJul.19 (GMM/Inautonews.com) Organisers of the Russian grand prix have responded swiftly to renewed doubts about October's ...
Mercedes ‘still fast’ even without Fric
Mercedes ‘still fast’ even without FricJul.19 (GMM/Inautonews.com) Even with no car running the technology at Hockenheim, 'Fric' was the buzzword at the scene of the ...
Mind games ‘important’ in Mercedes title battle
Mind games ‘important’ in Mercedes title battleJul.19 (GMM/Inautonews.com) It was, of course, unnecessary for audacious competitor Fernando Alonso to tell reporters at ...
Racing tracks – sleeping pill or energy drink?
Racing tracks – sleeping pill or energy drink?The racing weekend took us across the whole world last weekend, with dull or spectacular racing being influenced not only by the ...
Pink Lamborghini Gallardo Spyder spotted in Canada
Pink Lamborghini Gallardo Spyder spotted in CanadaA Lamborghini Gallardo Spyder finished in a hideous pink shade has been recently spotted out in Canada and it makes supercar ...
[VIDEO] New Nissan X-Trail promo released
[VIDEO] New Nissan X-Trail promo releasedNissan has released a new promotional video with the new generation of the X-Trail in which the midsized SUV is being shown in a ...
2015 Smart ForTwo Roadster gets rendered, will never happen
2015 Smart ForTwo Roadster gets rendered, will never happenThe first rendering of the new-gen Smart ForTwo is ending up on the web, a couple of days after the city car was officially ...
Driver crashes his Ferrari F430 during police chase
Driver crashes his Ferrari F430 during police chaseA police chase has gone wrong for both the driver of this Ferrari F430 and also for the law because the supercar was crashed and ...
Chevrolet’s Man United sponsorship rivaled by Nissan’s Manchester City deal
Chevrolet’s Man United sponsorship rivaled by Nissan’s Manchester City dealHot on the heels of a $559 million Manchester United shirt sponsorship deal by GM’s Chevrolet brand comes Nissan. The Japanese ...
U.S. – BMW i8 gets priced
U.S. – BMW i8 gets pricedBMW USA has announced the official price list for the i8 locally, where the hybrid sports car can be yours from 135,700 ...
[VIDEO] 2015 Toyota Sienna makes video debut
[VIDEO] 2015 Toyota Sienna makes video debutThe Japanese based automaker Toyota has released the first promotional video with the updated version of the Sienna. After being ...
After Ferrari, Maserati to also cap sales
After Ferrari, Maserati to also cap salesAlthough the subsidiary of Italy’s Fiat SpA will not have the same smallish limit as the super car producer, the automaker ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

lamborghini gallardo spyder pink 1
ferrari f430 crash police chase czech republic 2014 1
2015 smart fortwo crash test 1
lamborghini veneno roadster black 1
lamborghini-veneno-beijing 1
2015 Toyota Sienna 1
Spied Hyundai ix35 05
Aston Martin V12 Vantage S Roadster 21
2015 ford expedition 36
scenic-byway-163
lamborghini gallardo lp570-4 spyder performante crashed for sale 1
2015 volkswagen passat cc render 1

More automotive from inautonews
The racing weekend took us across the whole world last weekend, with dull or spectacular racing being influenced not only by the quality of the drivers' field and weather conditions, but also by the eternal topic of the rolling surface, the asphalt strips laid out with inspiration or clumsiness on ...
read more
Inautonews Editors Section
Racing tracks – sleeping pill or energy drink?
Racing tracks – sleeping pill or energy drink?The racing weekend took us across the whole world last weekend, with dull or spectacular racing being influenced not only by the quality of the ...
Preview – 2014 German Grand Prix
Preview – 2014 German Grand PrixThe old mighty 7km-long Hockenheimring was built in 1932, and it was true madness, as close as you can get to AVUS. When Jim Clark died here, on the ...
F1: Silverstone 2014, British Grand Prix preview
F1: Silverstone 2014, British Grand Prix preview"The key to a quick lap around Silverstone is a car that remains stable during direction changes, and one that is aerodynamically stable, because ...

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 [VIDEO] Daimler crashes the new Smart ForTwo into the S-ClassThe new generation of the Smart ForTwo has recently had its first ever crash test, just a couple of ... Recall roundup: Mitsubishi ASX and Outlander in AustraliaMitsubishi Australia has issued a recall for several ASX and Outlander vehicles because of a ...
Safety Section