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FCAU - Fiat Chrysler Automobiles


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Phew. That cut it pretty darn close.

 

Also:

 

Fiat SpA (F) investors exercised 463.6 million euros ($610 million) in cash-exit rights, 7.3 percent less than the limit set by the Italian carmaker to complete a merger with its U.S. unit Chrysler Group LLC.

 

About 60 million shares were submitted by investors at the cash-exit price of 7.727 euros a share, Turin-based Fiat said today in a statement. Had the tally exceeded the company’s 500 million-euro spending cap, the combination with Chrysler would have been delayed.

 

Seriously? The merger was completed eight months ago. Any amount of due diligence would have told you that...

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http://www.bloomberg.com/news/2014-09-08/ferrari-chief-said-to-near-exit-over-clash-with-fiat.html

 

Montezemolo, who took charge of Ferrari in 1991, wants to maintain Ferrari’s autonomous status and limit sales to about 7,000 cars a year to preserve the brand’s exclusive allure. That clashes with Marchionne’s goal of having Ferrari bolster a shift by the group into upscale cars as part of Fiat’s merger with U.S. unit Chrysler Group LLC.

 

Does it mean we will see higher production of Ferrari?  That must be a good thing short- and medium-term?

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I would argue long term as well, as long as management does not dilute the brand with subpar quality. Given the quality of management at Fiat, I think the odds are against mismanagement of that brand.

 

I guess as long as production < demand, pricing power and brand value can be sustained.  I believe the CEO mentioned Ferrari can ramp from 7k to 10k in a rather short time.  That's conservatively another 50% of profit.

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I love how the author uses VW as an example for how you should manage your brands.

 

Audi as been using Lambo engines for years.

 

http://www.lambocars.com/lambonews/audi_s8_with_lamborghini_engine.html

 

So much for "ecxlusivity" and "independence".

 

And the interiors of the mass market brands pretty much all look the same. You can't tell whether you are sitting in a Seat, a VW, a Skoda...

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I love how the author uses VW as an example for how you should manage your brands.

 

Audi as been using Lambo engines for years.

 

http://www.lambocars.com/lambonews/audi_s8_with_lamborghini_engine.html

 

So much for "ecxlusivity" and "independence".

 

And the interiors of the mass market brands pretty much all look the same. You can't tell whether you are sitting in a Seat, a VW, a Skoda...

 

There's a difference in Audi using Lambo engines and Ferrari using Chrysler engines which was what the article was talking about

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I love how the author uses VW as an example for how you should manage your brands.

 

Audi as been using Lambo engines for years.

 

http://www.lambocars.com/lambonews/audi_s8_with_lamborghini_engine.html

 

So much for "ecxlusivity" and "independence".

 

And the interiors of the mass market brands pretty much all look the same. You can't tell whether you are sitting in a Seat, a VW, a Skoda...

 

There's a difference in Audi using Lambo engines and Ferrari using Chrysler engines which was what the article was talking about

There are comparables, The r8 v10 is essentially a cheaper gallardo underneath the exterior styling. 

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I love how the author uses VW as an example for how you should manage your brands.

 

Audi as been using Lambo engines for years.

 

http://www.lambocars.com/lambonews/audi_s8_with_lamborghini_engine.html

 

So much for "ecxlusivity" and "independence".

 

And the interiors of the mass market brands pretty much all look the same. You can't tell whether you are sitting in a Seat, a VW, a Skoda...

 

There's a difference in Audi using Lambo engines and Ferrari using Chrysler engines which was what the article was talking about

 

The title of the article is misleading. Read it again. It's about Ferrari supplying parts of the engine (Turbochargers) for the Maserati Ghibli and the potential that in the future Ferrari will supply parts to other brands like Alpha Romeo. Since Alpha Romeo - according to the 5 year plan - should become the "Audi" of FCA and Maserati is similar to the high end of Audi I think it is reasonable to compare it with the Lambo-Audi relationship, which has worked out just fine for both Audi and Lambo.

 

 

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Anybody receive the rights issuance notice?

 

What is this? I've not received it.

 

They are obliged to offer the shares (the 460 million Euro), that were sold to Fiat by shareholders who voted against the merger, at something like 7.72 Euro to the rest of the shareholders. You should get untradable rights to buy one share per about 19.7 shares you own.

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Anybody receive the rights issuance notice?

 

What is this? I've not received it.

 

They are obliged to offer the shares (the 460 million Euro), that were sold to Fiat by shareholders who voted against the merger, at something like 7.72 Euro to the rest of the shareholders. You should get untradable rights to buy one share per about 19.7 shares you own.

 

Oh. I see. No I haven't received, but I suspect anyone would want to buy here instead of in the opening market?

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