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FCAU - Fiat Chrysler Automobiles


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Fiat mentioned in the Fairfax Annual Letter

 

Tesla Motors, for example, sold 22,477 cars in 2013 but commands a market cap of

$31 billion, while Fiat, which we like, sold 4.4 million cars but has a market cap of only $14 billion.

 

And looks like they exited their Fiat position

 

"$69 million from the sale of Fiat"

 

Any guesses/ideas as to what price they bought Fiat at ?

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Fiat mentioned in the Fairfax Annual Letter

 

Tesla Motors, for example, sold 22,477 cars in 2013 but commands a market cap of

$31 billion, while Fiat, which we like, sold 4.4 million cars but has a market cap of only $14 billion.

 

And looks like they exited their Fiat position

 

"$69 million from the sale of Fiat"

 

Any guesses/ideas as to what price they bought Fiat at ?

isn't this bad? I still only have a small position because i havent studied it, but i dont really like making it bigger if these guys are selling.. Im not smarter then them for sure

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I would not read too much into what Fairfax has been doing as they also sold out of Wells Fargo, US Bancorp and JNJ prematurely considering how highly Prem spoke about them in the past. 

 

Tks,

S

 

Fiat mentioned in the Fairfax Annual Letter

 

Tesla Motors, for example, sold 22,477 cars in 2013 but commands a market cap of

$31 billion, while Fiat, which we like, sold 4.4 million cars but has a market cap of only $14 billion.

 

And looks like they exited their Fiat position

 

"$69 million from the sale of Fiat"

 

Any guesses/ideas as to what price they bought Fiat at ?

isn't this bad? I still only have a small position because i havent studied it, but i dont really like making it bigger if these guys are selling.. Im not smarter then them for sure

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^Why do you guys feel it is not cheap? Overall, all considered, it seems to have a fairly high normalized FCF yield, and serious upside from higher sales of high margin cars plus platform synchronization across Chrysler, Fiat, and Maserati...

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Fiat mentioned in the Fairfax Annual Letter

 

Tesla Motors, for example, sold 22,477 cars in 2013 but commands a market cap of

$31 billion, while Fiat, which we like, sold 4.4 million cars but has a market cap of only $14 billion.

 

And looks like they exited their Fiat position

 

"$69 million from the sale of Fiat"

 

Any guesses/ideas as to what price they bought Fiat at ?

 

I believe they bought at ~US$4.75 per share.

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Fiat Chrysler Recalls 18K New 500L Cars Due To Transmission Issue

http://detroit.cbslocal.com/2014/03/15/fiat-chrysler-recalls-18k-new-500l-cars-due-to-transmission-issue/

 

Fiat Chrysler CEO Sets Internal Deadline of Oct. 1 for NY Listing

Listing Would Further Solidify Tie-Up, Give Greater Access to U.S. Capital Market

http://online.wsj.com/news/articles/SB10001424052702303546204579439631725485534?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303546204579439631725485534.html

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Fiat announces pricing of 1bln in notes due 2021 at 4.75%

 

Fiat S.p.A. announces pricing of its offering of € 1 billion in guaranteed 4.75% Senior Notes due March 2021

Following Fiat S.p.A.’s announcement earlier today of its launch of a benchmark note issuance denominated in Euro, Fiat S.p.A. confirms that the offering will be of € 1 billion in principal amount of 4.75% Senior Notes due March 2021, with an issue price of 100% of the principal amount.

The closing of the offering is currently expected on 21st March 2014. The notes will be issued by Fiat Finance and Trade Ltd, société anonyme, a wholly-owned subsidiary of Fiat S.p.A., under the Global Medium Term Note Programme guaranteed by Fiat S.p.A.. The offering was very well received and orders were significantly higher than the amount of the offering.

 

Hopefully this lowers the probability of a convertible debt offering!

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  • 2 weeks later...
Maserati has Italian allure and a recognized sporting heritage. But Fiat Chrysler, the world's seventh-largest auto group, sold just 15,400 of the growling, muscular sportscars last year - not yet enough to change the group's fortunes - compared to Porsche's sales of over 160,000.

 

Porsche's 18-percent automotive operating margin - the rate of underlying profit on its sales - has made it a more valuable company than rivals selling millions of cars each year. Even in the premium sector, the average margin is only 10 percent.

 

Porsche contributed less than 2 percent of VW group sales in 2013 but about 22 percent of its operating profit. Maserati's trading profit tripled last year but still contributed just 5 percent of Fiat profits and less than 2 percent of sales.

 

By 2015, Marchionne wants to be selling 50,000 Maseratis. The goal hinges on a rapid take-up of new models designed to appeal to a broader variety of driver tastes and budgets.

 

Maseratis are priced at around a 20 percent premium over similar-sized rival German cars, so the product offensive must not cheapen the brand.

 

http://finance.yahoo.com/news/porsches-success-looms-over-maserati-155924686.html

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