PlanMaestro Posted January 30, 2013 Share Posted January 30, 2013 "Fiat has said it needs to fix its European business before finalizing a planned merger with Chrysler Group. " Any thoughts on that, plan? If it acquires Chrysler before fixing Europe, isn't it cheaper to do so? That would make Fiat's own EBITDA multiple to be compressed. http://www.bloomberg.com/news/2012-10-30/fiat-chrysler-merger-takes-backseat-to-europe-fix.html Link to comment Share on other sites More sharing options...
LC Posted January 30, 2013 Author Share Posted January 30, 2013 Fiat approves 5bln Euro bond issue: http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683318 Fiat declines 2012 dividend payment to improve liquidity (and b/c Chrysler restrictions): http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683275 Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 30, 2013 Share Posted January 30, 2013 2012 Results Presentation including new product pipeline and 2013 guideline. http://www.chryslergroupllc.com/Investor/presentations/QAWebcasts/ChryslerDocuments/Q4_2012_Presentation.pdf Chrysler's revised product plan bolsters Fiat brand in U.S. http://www.autonews.com/article/20130130/OEM04/130139993#ixzz2JTSouiZm The revised strategy contains changes for each brand Chrysler sells in North America. It shows the addition of seven new unannounced vehicles for the Fiat brand in 2015 and 2016, as well as a single Alfa Romeo, believed to be the 4C sports coupe, arriving this year. There are five additional unidentified new Alfa's planned to arrive in 2015 and 2016, the plan indicates. Chrysler: Three Chrysler vehicles that were to be built by Fiat in 2012 and 2013 have been dropped from the previously released plan. One existing Chrysler vehicle -- likely the 200 sedan -- will be refreshed in 2014, and three new vehicles are to arrive for the brand in 2015. Jeep: The addition of a small Jeep built by Fiat has been delayed one year until 2014. Two new Jeep products will be introduced in 2015, including one vehicle -- likely the previously discussed 7-passenger Grand Wagoneer -- which is delayed two years. The brand will refresh two of its products in 2016. Ram: A Fiat-built Ram -- likely a rebadged Fiat Doblo small commercial van -- has been delayed two years from the previous product plan and will appear in 2014. Two new Rams are now scheduled to appear in 2016. Dodge: While two previous Fiat-produced Dodge vehicles have been dropped, three existing vehicles in the brand will receive previously unscheduled refreshes -- one this year and two in 2014. Another existing unidentified vehicle will get a new platform in 2015, and the brand will add another vehicle to its lineup in 2016. SRT: Chrysler Group's performance brand won't get another new vehicle in its lineup until 2016, but will get new refreshes of three existing vehicles in 2014. The Viper, released last year, will next be refreshed in 2015. Link to comment Share on other sites More sharing options...
luck Posted January 30, 2013 Share Posted January 30, 2013 fiaty pulling back significantly on news after long runup. it seems to me to be a great, but messy, opportunity at these prices. Link to comment Share on other sites More sharing options...
muscleman Posted January 30, 2013 Share Posted January 30, 2013 Fiat approves 5bln Euro bond issue: http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683318 Fiat declines 2012 dividend payment to improve liquidity (and b/c Chrysler restrictions): http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683275 Is this a signal that it would like to buyout the minority Chrysler stakes now? Is it more advantageou to do the full integration now or later? Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 30, 2013 Share Posted January 30, 2013 Fiat approves 5bln Euro bond issue: http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683318 Fiat declines 2012 dividend payment to improve liquidity (and b/c Chrysler restrictions): http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683275 Is this a signal that it would like to buyout the minority Chrysler stakes now? Is it more advantageou to do the full integration now or later? Fiat said its board had proposed suspending a dividend payment because of its desire to keep a high level of liquidity, which reached €20.8 billion at the end of 2012. "It is purely prudence to extend our cash requirements (in the event that we reach an agreement to buy) some or all of [the trust's] interest in Chrysler," Mr. Marchionne told analysts on a conference call. "It is my objective that Fiat and Chrysler become a combined corporate entity." Fiat and a United Auto Workers' retiree trust, which holds a 41.5% stake in Chrysler, are at loggerheads over the valuation of a call option Fiat tried to exercise last July to buy a 3.3% stake in the U.S. company. Fiat offered the trust, called a Voluntary Employee Beneficiary Association, $139.7 million last year to buy the stake. Fiat has since proposed paying $198 million for another 3.3% stake. The VEBA responded to Fiat's suit over the initial 3.3% stake by asking for about $343 million. http://professional.wsj.com/article/SB10001424127887323701904578273823001741466.html?mod=WSJ_business_whatsNews&mg=reno64-wsj Link to comment Share on other sites More sharing options...
LC Posted January 30, 2013 Author Share Posted January 30, 2013 Fiat approves 5bln Euro bond issue: http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683318 Fiat declines 2012 dividend payment to improve liquidity (and b/c Chrysler restrictions): http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683275 Is this a signal that it would like to buyout the minority Chrysler stakes now? Is it more advantageou to do the full integration now or later? I'm not sure what their intentions are. Marchionne says they want to "fix Europe" first before going after Chrysler - plus there is still the issue of what price they need to to acquire the minority stake. But I'm not sure what they need the cash for in the meantime. I think it makes more sense to acquire Chrysler and then figure out what to do in Europe. Link to comment Share on other sites More sharing options...
muscleman Posted January 30, 2013 Share Posted January 30, 2013 Fiat approves 5bln Euro bond issue: http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683318 Fiat declines 2012 dividend payment to improve liquidity (and b/c Chrysler restrictions): http://www.reuters.com/finance/stocks/FIATY.PK/key-developments/article/2683275 Is this a signal that it would like to buyout the minority Chrysler stakes now? Is it more advantageou to do the full integration now or later? I'm not sure what their intentions are. Marchionne says they want to "fix Europe" first before going after Chrysler - plus there is still the issue of what price they need to to acquire the minority stake. But I'm not sure what they need the cash for in the meantime. I think it makes more sense to acquire Chrysler and then figure out what to do in Europe. http://www.sec.gov/Archives/edgar/data/1513153/000119312511078025/dex991.htm This is the formal doc for that call option agreement. I saw earlier from a news reporter that Fiat also has the option to buy all of VEBA's stakes at $5.5 billion. But I couldn't find it from this doc. I think if that is true, then this action makes a lot of sense. They raised 5 billion euro so they could buy out Chrysler from VEBA, and use the remaining cash for other purposes. Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 30, 2013 Share Posted January 30, 2013 Ferrari to Help Alfa Romeo Prepare for Return to U.S. http://blogs.wsj.com/drivers-seat/2013/01/30/ferrari-to-help-alfa-romeo-prepare-for-return-to-u-s/ Analysts Reaction: Concern over future cash generation, product delays, margins http://www.autonews.com/article/20130130/OEM/130139991#ixzz2JVNB3U2P We have been bullish on Chrysler since Fiat took an interest in 2009. This was the first quarter we have been disappointed. Operating profit missed our estimate by 15 percent, despite over-production of 78,000 units. The Dart has disappointed, and 8 products have been delayed by at least a year versus the original plan. Meanwhile competition from both the Japanese and VW will get much tougher in 2013-15. We also stick to our view that Fiat does not currently have sufficient capital to fully buy out Chrysler - an event central to any bull-case on Fiat Auto in our view." -- Morgan Stanley analyst Stuart Pearson Link to comment Share on other sites More sharing options...
jch548 Posted January 31, 2013 Share Posted January 31, 2013 If Fiat can break-even in 2014 which might be a big if, Fiat's consolidated net after tax including Chrysler could approach 2.5B euros. Their market cap is only around 5b euros. Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 31, 2013 Share Posted January 31, 2013 If Fiat can break-even in 2014 which might be a big if, Fiat's consolidated net after tax including Chrysler could approach 2.5B euros. Their market cap is only around 5b euros. Just a reminder of Fiat Brazil and its 10% margins. Fiat ex-Chrysler operating margin is positive and consolidating Chrysler's balance sheet would help a lot.. http://farm9.staticflickr.com/8473/8430671557_276e38388b.jpg http://www.fiatspa.com/it-IT/investor_relations/investors/risultati_trimestrali/FiatDocuments/2012/Q4_FY_2012_Results_Review.pdf Link to comment Share on other sites More sharing options...
muscleman Posted January 31, 2013 Share Posted January 31, 2013 Ferrari to Help Alfa Romeo Prepare for Return to U.S. http://blogs.wsj.com/drivers-seat/2013/01/30/ferrari-to-help-alfa-romeo-prepare-for-return-to-u-s/ Analysts Reaction: Concern over future cash generation, product delays, margins http://www.autonews.com/article/20130130/OEM/130139991#ixzz2JVNB3U2P We have been bullish on Chrysler since Fiat took an interest in 2009. This was the first quarter we have been disappointed. Operating profit missed our estimate by 15 percent, despite over-production of 78,000 units. The Dart has disappointed, and 8 products have been delayed by at least a year versus the original plan. Meanwhile competition from both the Japanese and VW will get much tougher in 2013-15. We also stick to our view that Fiat does not currently have sufficient capital to fully buy out Chrysler - an event central to any bull-case on Fiat Auto in our view." -- Morgan Stanley analyst Stuart Pearson Plan, I tried to figure the VEBA-Fiat deal for quite a while but still couldn't understand it. Could you please help me take a look? http://www.sec.gov/Archives/edgar/data/1513153/000119312511078025/dex991.htm This is the formal doc for that call option agreement. I saw earlier from a news reporter that Fiat also has the option to buy all of VEBA's stakes at $5.5 billion. But I couldn't find it from this doc. I think if that is true, then this action makes a lot of sense. They raised 5 billion euro so they could buy out Chrysler from VEBA, and use the remaining cash for other purposes. Link to comment Share on other sites More sharing options...
jch548 Posted January 31, 2013 Share Posted January 31, 2013 The employees want to IPO chrysler so they can set a better price. There is some issue if they can demand this but Sergio seemed to acquiese to this. This could end up looking like Renault and Nissan where Renault's market value is less than their value of Nissan shares. Link to comment Share on other sites More sharing options...
txlaw Posted January 31, 2013 Share Posted January 31, 2013 AutoNation CEO on record results: http://video.cnbc.com/gallery/?play=1&video=3000143937 Link to comment Share on other sites More sharing options...
txlaw Posted January 31, 2013 Share Posted January 31, 2013 AutoNation CEO on record results: http://video.cnbc.com/gallery/?play=1&video=3000143937 Notice the shout out to Chrysler. Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 31, 2013 Share Posted January 31, 2013 Notice the shout out to Chrysler. Oh my god, is that Nardelli? Auch! RR: Yes he is, and talking about McNerney and Boeing. http://video.msnbc.msn.com/cnbc/50651013/#50651013 Link to comment Share on other sites More sharing options...
txlaw Posted January 31, 2013 Share Posted January 31, 2013 Notice the shout out to Chrysler. Oh my god, is that Nardelli? Auch! RR: Yes he is, and talking about McNerney and Boeing. http://video.msnbc.msn.com/cnbc/50651013/#50651013 Haha, yeah. Link to comment Share on other sites More sharing options...
muscleman Posted January 31, 2013 Share Posted January 31, 2013 Ferrari to Help Alfa Romeo Prepare for Return to U.S. http://blogs.wsj.com/drivers-seat/2013/01/30/ferrari-to-help-alfa-romeo-prepare-for-return-to-u-s/ Analysts Reaction: Concern over future cash generation, product delays, margins http://www.autonews.com/article/20130130/OEM/130139991#ixzz2JVNB3U2P We have been bullish on Chrysler since Fiat took an interest in 2009. This was the first quarter we have been disappointed. Operating profit missed our estimate by 15 percent, despite over-production of 78,000 units. The Dart has disappointed, and 8 products have been delayed by at least a year versus the original plan. Meanwhile competition from both the Japanese and VW will get much tougher in 2013-15. We also stick to our view that Fiat does not currently have sufficient capital to fully buy out Chrysler - an event central to any bull-case on Fiat Auto in our view." -- Morgan Stanley analyst Stuart Pearson Plan, I tried to figure the VEBA-Fiat deal for quite a while but still couldn't understand it. Could you please help me take a look? http://www.sec.gov/Archives/edgar/data/1513153/000119312511078025/dex991.htm This is the formal doc for that call option agreement. I saw earlier from a news reporter that Fiat also has the option to buy all of VEBA's stakes at $5.5 billion. But I couldn't find it from this doc. I think if that is true, then this action makes a lot of sense. They raised 5 billion euro so they could buy out Chrysler from VEBA, and use the remaining cash for other purposes. No body seems to be interested in reading these sec filings? I read that again and again, and I think I probably have understood it. Please correct me if I am wrong. :) There is no outright price to buyout all of VEBA's stakes at $5.5 billion. Instead the price is the same as if Chrysler buys 3.3% chunk every 6 months. If this is the case, then I don't understand why Fiat doesn't buy out all of the VEBA stakes now, because Chrysler will probably do well in 2013 and increase its EBITDA. Perhaps Marchionne's recent announcement to delay and cut some Chrysler products is on purporse to decrease its EBITDA so that Fiat can acquire the stakes cheaply? ::) Link to comment Share on other sites More sharing options...
jch548 Posted February 1, 2013 Share Posted February 1, 2013 There were a few articles in the financials today regarding Fiat. Sergio is aiming for Fiat to breakeven in europe in 2016 now. Probably looking at net debt increasing at Fiat the next couple of years with the investments they are making. It was also mentioned that Veba had excersised an option to have Chrysler IPO instead of selling the rest to Fiat. Sergio said he still wants to buy the rest of Chrysler. The Veba option creates a problem. This might be litigated. I wouldn't count on Fiat picking up the rest of Chrysler. It's kind of funny but Chrysler could IPO and then rescue Fiat in a takeover as the two comanies would be so intertwined. The tables will have turned. Link to comment Share on other sites More sharing options...
muscleman Posted February 1, 2013 Share Posted February 1, 2013 There were a few articles in the financials today regarding Fiat. Sergio is aiming for Fiat to breakeven in europe in 2016 now. Probably looking at net debt increasing at Fiat the next couple of years with the investments they are making. It was also mentioned that Veba had excersised an option to have Chrysler IPO instead of selling the rest to Fiat. Sergio said he still wants to buy the rest of Chrysler. The Veba option creates a problem. This might be litigated. I wouldn't count on Fiat picking up the rest of Chrysler. It's kind of funny but Chrysler could IPO and then rescue Fiat in a takeover as the two comanies would be so intertwined. The tables will have turned. Some analysts said that there would not be the real IPO. VEBA's only negotiation leverage is to put this in IPO, but who is interested in being a minority shareholder of Chrysler? Even if someone on Wall Street buys all the IPO shares, their voice could still be ignored completely because they still don't have control of the company. Also Fiat could threaten to walk away from Chrysler if the IPO happens, and investment bankers knows that their hard work cannot bring them profits. Instead it is more likely just to be a negotiation leverage for VEBA. They won't work hard for the IPO. I think there is a higher chance for the issue to be resolved this year than the actually IPO. Link to comment Share on other sites More sharing options...
PlanMaestro Posted February 1, 2013 Share Posted February 1, 2013 http://www.autonews.com/article/20130201/RETAIL01/130129902#ixzz2JfRF3vNz Chrysler's sales were led by Dodge, where volume rose 37 percent, and Fiat, with deliveries rising 31 percent. Chrysler said its car sales, led by the Dodge Avenger and Dart, and the Fiat 500 line, were up 50 percent, while light-truck deliveries increased 3 percent. Sales of the Dart totaled 7,154, the car's best month since its June launch, Chrysler said. Jeep sales dropped 4 percent. It was the fourth consecutive monthly sales decline for Jeep and reflects the discontinuation of the Liberty SUV. Chrysler's U.S. sales have now advanced 34 consecutive months, helping the company gain U.S. market share. It is one month short of matching the 35-month sales streak produced in the period ending December 1994. The company has benefited from new models, fleet shipments and some of the highest incentives in the industry. "Entering 2013 our product portfolio has never been stronger," Reid Bigland, head of U.S. sales operations for Chrysler, said in a statement. Link to comment Share on other sites More sharing options...
PlanMaestro Posted February 1, 2013 Share Posted February 1, 2013 Italy January New Car Registrations Fall 17.6%. http://www.4-traders.com/FIAT-SPA-69342/news/Italy-Jan-New-Car-Registrations-Fall-17-6-Official-15989769/ Link to comment Share on other sites More sharing options...
PlanMaestro Posted February 2, 2013 Share Posted February 2, 2013 Ferrari to help Alfa Romeo on engines http://europe.autonews.com/apps/pbcs.dll/article?AID=/20130130/ANE/130139986/ferrari-to-help-alfa-romeo-on-engines-marchionne-says#axzz2JlsXW8X3 Fiat SpA will announce within a month a technical cooperation between its Ferrari and Maserati subsidiaries on engine work aimed at rebuilding the Alfa Romeo brand. "Ferrari will take a more active role in engine development for Alfa, similar to what Ferrari already did for Maserati," Fiat-Chrysler CEO Sergio Marchionne said Wednesday in a call with analysts. Marchionne added that "engines worth wearing the Alfa badge" remain the biggest issue he is facing in reviving the sports-car brand. After struggling for years to relaunch Alfa, Marchionne in November announced a new plan, calling for nine new-model introductions from 2013 through 2016. He hopes to triple Alfa sales to 300,000 units annually in 2016, from about 100,000 last year. Marchionne said Alfa is currently working on the development of three new products, in addition to the brand's three existing models. A Fiat spokesman told Automotive News Europe that Marchionne was referring to the mid-sized Giulia sedan and wagon and a two-seat, rear-wheel-drive roadster. The Giulia variants, set to replace the Alfa 159 discontinued at the end of 2011, are due to debut in Europe in 2014 and in the United States in 2015. The Giulia models will be built in Cassino, central Italy. The factory already builds the Giulietta compact for Alfa as well as the Delta for Lancia and the Bravo for Fiat. The Alfa roadster will be built by Mazda Motor Corp. in Hiroshima, Japan, together with the replacement of the MX-5 roadster, starting in 2015. The spokesman added that the Alfa 4C limited-edition coupe, unveiled as a concept car at the Geneva auto show in March 2011, is already considered part of the existing Alfa range. The others are the MiTo subcompact and Giulietta compact. The 4C will go on sale by the end of the year in Europe and the United States. Production is planned at 2,500 units a year. Of those, 1,000 would be bound for Europe and the United States each; the balance would be sold in the rest of the world. Link to comment Share on other sites More sharing options...
paologorgo Posted February 3, 2013 Share Posted February 3, 2013 Marchionne's interview with the editor of the Italian newspaper Repubblica (in Italian): http://video.repubblica.it/dossier/repubblica-delle-idee-2013 merger with Chrysler by 2014 Alfa is not for sale Link to comment Share on other sites More sharing options...
PlanMaestro Posted February 3, 2013 Share Posted February 3, 2013 Marchionne's interview with the editor of the Italian newspaper Repubblica (in Italian): http://video.repubblica.it/dossier/repubblica-delle-idee-2013 merger with Chrysler by 2014 Alfa is not for sale That's fantastic Paolo. Time to practice the italiañol. A report in english. http://www.4-traders.com/FIAT-SPA-69342/news/Fiat-CEO-Aims-To-Reach-Chrysler-Stake-Price-Deal-By-2014-16006296/ Link to comment Share on other sites More sharing options...
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