FCAU - Fiat Chrysler Automobiles

[skanjete]

Six months ago Sergio was threatening to move Fiat's HQ to Detroit. Now it seems he doesn't want to close any capacity in Italy something about who ever closes capacity first will lose market share. Fiat has the most excess capacity of any of Europe's auto makers by a long shot. I don't understand the argument. One of the French companies announced last month they are closing some capacity. How do you lose market share or get under cut when unused capacity goes away and your fixed costs drop?

 

I think the argument is the first one to blink, loses the upside on the operating leverage. I see your point though, Sergio has seemed to double down on Italy recently.

 

Sergio is executing exactly as he communicated before. He doesn't want to close capacity in Italy because it would benefit competitors more than it would benefit Fiat.

Instead he wants to use the unused capacity to produce Maserati's and Alfa Romeo's for the export markets.

[muscleman]

Six months ago Sergio was threatening to move Fiat's HQ to Detroit. Now it seems he doesn't want to close any capacity in Italy something about who ever closes capacity first will lose market share. Fiat has the most excess capacity of any of Europe's auto makers by a long shot. I don't understand the argument. One of the French companies announced last month they are closing some capacity. How do you lose market share or get under cut when unused capacity goes away and your fixed costs drop?

 

If the Chrysler deal falls apart, he could just sell all Chrysler shares and don't move HQ.

I think he is preparing for that. By heavily investing in Italy, he can have alternative options.

[nikhil25]

Jenkins: The U.S. Bailout of Fiat

How a troubled Italian auto maker became a beneficiary of Obama's zany fuel-economy targets.

http://online.wsj.com/news/articles/SB10001424052702304014504579250242537507118

[jch548]

Keeping all the capacity in Italy Sergio has to be thinking out about five years and betting the Alpha Romeo export model will be a homerun. U.S. based capacity is still cheaper than Europe so he has to export upscale autos. Might be kind of a stretch but if it works and the Chrysler merger happens I could see Fiat multi bagging. Been reading U.S. auto sales should be very healthy the next three to four years so its a decent time to roll the dice.

[phil_Buffett]

Keeping all the capacity in Italy Sergio has to be thinking out about five years and betting the Alpha Romeo export model will be a homerun. U.S. based capacity is still cheaper than Europe so he has to export upscale autos. Might be kind of a stretch but if it works and the Chrysler merger happens I could see Fiat multi bagging. Been reading U.S. auto sales should be very healthy the next three to four years so its a decent time to roll the dice.

 

+1 i have the absolutely same Feeling as you jch548

[fareastwarriors]

Failed Talks and an Italian Wedding

 

http://www.bloomberg.com/news/2013-12-12/failed-talks-and-an-italian-wedding.html

 

 

this a part of series of articles on detriot/carmakers/workers.

[muscleman]

http://online.wsj.com/news/articles/SB10001424052702304014504579250242537507118?mod=WSJ_qtoverview_wsjlatest

 

The U.S. Bailout of Fiat

 

How a troubled Italian auto maker became a beneficiary of Obama's zany fuel-economy targets.

 

This is posted by nikhil25 yesterday :)

[brker_guy]

Nice video about Chrysler Jeep Plant in Detroit.  I have to say.  I worked in Detroit for a few months last year, and it was sad to see the place.  But the people there work very hard.  It's the UAW who really ran the place down.

 

http://www.bloomberg.com/video/how-chrysler-saved-the-last-auto-plant-in-detroit-Lw~SXy~_THWdvXCoxpCYWQ.html

 

 

[brker_guy]

The all-new 2015 Chrysler 200 spy shots:

 

http://www.autonews.com/apps/pbcs.dll/gallery?Site=CA&Date=20131213&Category=PHOTOS01&ArtNo=121309999&Ref=PH&Params=Itemnr=1#axzz2nOarBzWZ

[phil_Buffett]

The all-new 2015 Chrysler 200 spy shots:

 

http://www.autonews.com/apps/pbcs.dll/gallery?Site=CA&Date=20131213&Category=PHOTOS01&ArtNo=121309999&Ref=PH&Params=Itemnr=1#axzz2nOarBzWZ

 

Looks nice  :)

[Ian L]

I dont understand how they can afford to spend 12 billion in Italy, but dont want to pay up an extra billion for the rest of Chrysler. How can there be so little flexibility on Chrysler, which is profit making but ready to make such a huge investment in Italy, which is still losing.

[muscleman]

It is coming to year end, does any one know if there will be an ADR fee to hit my account soon?

If yes, will there be a way to avoid it? I know that in IB, I should be able to convert my FIATY into F:MI on the Italian exchange.

I looked at this link but don't quite understand how it works.

https://www.adr.db.com/drweb/dr_details.html?identifier=606&identifierType=DRID

[racemize]

It is coming to year end, does any one know if there will be an ADR fee to hit my account soon?

If yes, will there be a way to avoid it? I know that in IB, I should be able to convert my FIATY into F:MI on the Italian exchange.

I looked at this link but don't quite understand how it works.

https://www.adr.db.com/drweb/dr_details.html?identifier=606&identifierType=DRID

 

Wait, there are fees for ADRs?  I was not aware of that.

 

If that is the case, why not just invest directly in the underlying?

[fareastwarriors]

If you are an ADR investor, you may already know that banks that custody ADRs (ADR agents) are allowed to charge custody fees. The amount and timing of custody fees are detailed in your ADR prospectus.

 

In the past, ADR agents could collect custody fees only when they were able to subtract them from ADR dividends. Since many ADRs do not pay regular dividends, agents were often unable to collect their fees.

 

New fee-collection method approved by SEC

Last year, the Depository Trust Company (DTC) received SEC approval to start collecting custody fees on behalf of ADR agents for ADRs that do not pay periodic dividends. To collect the fees owed by ADR investors, the DTC has started charging companies like Schwab that hold ADRs for their clients. Fees charged to Schwab by the DTC are referred to as “ADR pass-through fees.”

 

What this means for ADR investors

 

ADR fees normally average from one to three cents per share. Fee amounts and timing differ by ADR. See your ADR prospectus for specific information. Search for it online with EDGAR Company Search.

Fees collected from Schwab by the DTC will be automatically passed through to you. They will be deducted from your Schwab account and shown on your monthly statements. See sample statement.

Pass-through fees are deducted from your account for your ADRs that do not pay dividends. For dividend-paying ADRs, agents will deduct their fees from your dividends as they have in the past. Going forward, both types of ADR fees will be identified on your statement as “ADR Pass Thru Fee.”

 

 

http://www.schwab.com/public/schwab/nn/m/q207/adr.html

[muscleman]

It is coming to year end, does any one know if there will be an ADR fee to hit my account soon?

If yes, will there be a way to avoid it? I know that in IB, I should be able to convert my FIATY into F:MI on the Italian exchange.

I looked at this link but don't quite understand how it works.

https://www.adr.db.com/drweb/dr_details.html?identifier=606&identifierType=DRID

 

Wait, there are fees for ADRs?  I was not aware of that.

 

If that is the case, why not just invest directly in the underlying?

 

Exactly. I am going to call my broker tonight to get my FIATY converted to the underlying.

[phil_Buffett]

http://europe.autonews.com/article/20131216/ANE/312169933/tight-race-for-top-job-at-fiat-chrysler#axzz2ndbVGfvU

[muscleman]

If you are an ADR investor, you may already know that banks that custody ADRs (ADR agents) are allowed to charge custody fees. The amount and timing of custody fees are detailed in your ADR prospectus.

 

In the past, ADR agents could collect custody fees only when they were able to subtract them from ADR dividends. Since many ADRs do not pay regular dividends, agents were often unable to collect their fees.

 

New fee-collection method approved by SEC

Last year, the Depository Trust Company (DTC) received SEC approval to start collecting custody fees on behalf of ADR agents for ADRs that do not pay periodic dividends. To collect the fees owed by ADR investors, the DTC has started charging companies like Schwab that hold ADRs for their clients. Fees charged to Schwab by the DTC are referred to as “ADR pass-through fees.”

 

What this means for ADR investors

 

ADR fees normally average from one to three cents per share. Fee amounts and timing differ by ADR. See your ADR prospectus for specific information. Search for it online with EDGAR Company Search.

Fees collected from Schwab by the DTC will be automatically passed through to you. They will be deducted from your Schwab account and shown on your monthly statements. See sample statement.

Pass-through fees are deducted from your account for your ADRs that do not pay dividends. For dividend-paying ADRs, agents will deduct their fees from your dividends as they have in the past. Going forward, both types of ADR fees will be identified on your statement as “ADR Pass Thru Fee.”

 

 

http://www.schwab.com/public/schwab/nn/m/q207/adr.html

 

Each ADR is different. I just called Deusche Bank ADR department, and they said FIATY does not get charged ADR fees unless there is a cash dividend, so I think it is good. :)

[jay21]

UAW wants to eliminate two-tier wage system: official

 

http://finance.yahoo.com/news/uaw-wants-eliminate-two-tier-171028554.html

 

Thought this was interesting:

 

"UAW membership sunk to 355,191 in 2009 at the depths of the U.S. recession but while U.S. auto sales have increased nearly 50 percent since then, union membership has risen 8 percent."

[fareastwarriors]

Pay of hourly workers at the entry level starts at just under $16 an hour and rises over time to more than $19. Veteran workers are paid just more than $28 an hour.

 

 

About 16 percent of GM's 51,500 hourly U.S. employees are second-tier workers, while 19 percent of Ford's 46,500 hourly workers are paid at that level. About a quarter of Chrysler's 32,000 hourly workers are entry-level.

 

 

[brker_guy]

Fiat 500e motor makes Wards 10 Best engine list, 2nd-ever EV awarded

 

http://green.autoblog.com/2013/12/16/fiat-500e-motor-wards-10-best-engine-list-2014/?ncid=txtlnkusaolp00000588

 

http://wardsauto.com/ward039s-10-best-engines/fiat-500e-test-drive-wards-10-best-engines-2014

 

http://wardsauto.com/ward039s-10-best-engines/diesels-turbos-dominate-2014-ward-s-10-best-engines

 

 

[fareastwarriors]

http://www.bloomberg.com/news/2013-12-18/u-s-auto-revival-boosts-shipping-as-jeeps-go-to-china-freight.html

 

U.S. Auto Revival Boosts Shipping as Jeeps Go to China

[frommi]

Has anybody thought about what could go wrong with FIAT and what this means for the stock?

 

I allways think about buying FIAT, but i can`t pull the trigger because it has no downside protection and there is a lot of shit that can happen especially when this all-or-nothing move with Alfa Romeo goes wrong. Or perhaps Chrysler is at the top of its cycle and reverts now. (Ford revenue forecast a first sign?)

 

So has somebody evidence that we are not at the cycle top for Chrysler or is there a downside protection i don`t see?

[phil_Buffett]

Has anybody thought about what could go wrong with FIAT and what this means for the stock?

 

I allways think about buying FIAT, but i can`t pull the trigger because it has no downside protection and there is a lot of shit that can happen especially when this all-or-nothing move with Alfa Romeo goes wrong. Or perhaps Chrysler is at the top of its cycle and reverts now. (Ford revenue forecast a first sign?)

 

So has somebody evidence that we are not at the cycle top for Chrysler or is there a downside protection i don`t see?

 

the first and best downside protection is ferrari. one of the best brands in the world. everybody (vw etc.) would love to buy it. ferrari is almost worth all the current market cap.

 

i can sleep well  :)

[frommi]

the first and best downside protection is ferrari. one of the best brands in the world. everybody (vw etc.) would love to buy it. ferrari is almost worth all the current market cap.

 

i can sleep well  :)

 

In the pdf of the introductory post Ferrari is valued at 2 billion. That won`t move the needle with an EV of 48 billion. FIAT is highly levered, when there is a liquidation the only ones who potentially get something back are the creditors.

 

If i am wrong please tell me with numbers and facts.  :)

[jay21]

Spin offs of Ferrari, Maserati, and Chrysler provide some downside protection.  The launch of Alfa is the only thing that worries me because I don't really have a basis of evaluation and I probably should read more on it.

 

I do think there are some things that can go wrong here, but if only 1 or 2 of the many things that can go right do go right, I see myself making a lot of money.