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FCAU - Fiat Chrysler Automobiles


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not end of the world, compared to other US brands  ;D :

"Detroit Three brands other than Buick were all in the lower half of the rankings, the magazine said. Only four models from Fiat Chrysler’s Chrysler Group managed an average score"

 

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not end of the world, compared to other US brands  ;D :

"Detroit Three brands other than Buick were all in the lower half of the rankings, the magazine said. Only four models from Fiat Chrysler’s Chrysler Group managed an average score"

 

 

American brands never do well.

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This is sarcastic....

Not long ago, Mr. Quality of Chrysler was bragging how much work he has done to improve the reliability, and that the quality is almost as good as Toyota.

http://www.autospies.com/news/DOUBLE-TAKE-Study-Indicates-That-Chrysler-s-Cars-Are-Almost-As-Good-As-Those-From-Toyota-76178/

 

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When can that improve? This is weird... Why can't they hire a bunch of Toyota Quality head?

 

I suggest you read the book "The Toyota Way" which explains the ways Toyota manages to maintain and improve quality and at the same time get better financial performance.

 

So to answer you question: Toyota head people are not available. Toyota breeds their employees and treat them very well.

Quality is much more a question of culture than tools.

 

Anybody is surprised that an Italian owner makes the quality go south? I am not, Ferrari's cars are 250k and yet are not that reliable. You would think that they would be able to afford a proper QC with such price tabs yet they are not.

 

BeerBaron

 

 

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When can that improve? This is weird... Why can't they hire a bunch of Toyota Quality head?

 

I suggest you read the book "The Toyota Way" which explains the ways Toyota manages to maintain and improve quality and at the same time get better financial performance.

 

So to answer you question: Toyota head people are not available. Toyota breeds their employees and treat them very well.

Quality is much more a question of culture than tools.

 

Anybody is surprised that an Italian owner makes the quality go south? I am not, Ferrari's cars are 250k and yet are not that reliable. You would think that they would be able to afford a proper QC with such price tabs yet they are not.

 

BeerBaron

 

I am ok with that, but I am not ok with Doug Betts outright lies to journalists in 2013.

http://www.autospies.com/news/DOUBLE-TAKE-Study-Indicates-That-Chrysler-s-Cars-Are-Almost-As-Good-As-Those-From-Toyota-76178/

 

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34.5 million Treasury shares on 1.25 billion shares outstanding is basically a rounding error.

 

And the 2.5 billion convert? Probably 10% dilution?

 

Edit:

 

"FCA anticipates that it will offer up to 100 million FCA common shares including 35 million common shares currently held in treasury by FCA and approximately 54 million common shares that will be issued by FCA to replenish the share capital canceled following the exercise by Fiat S.p.A. "

 

"U.S.$2.5 billion in aggregate principal amount of mandatory convertible securities are expected to be offered in an SEC-registered offering to U.S. and international institutional investors. The mandatory convertible securities will be mandatorily convertible into FCA common shares at maturity. "

 

http://finance.yahoo.com/news/fca-board-authorizes-capital-transactions-131900864.html

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34.5 million Treasury shares on 1.25 billion shares outstanding is basically a rounding error.

 

And the 2.5 billion convert? Probably 10% dilution?

 

 

http://www.fcagroup.com/en-US/media_center/fca_press_release/FiatDocuments/2014/october/FCA_Board_Authorizes_Capital_Transactions.pdf

 

U.S.$2.5 billion in aggregate principal amount of mandatory convertible securities are expected to be offered in an SEC-registered offering to U.S. and international institutional investors. The mandatory convertible securities will be mandatorily convertible into FCA common shares at maturity. The interest rate, conversion rates and other terms and conditions of the mandatory convertible securities will be determined at pricing of the offering. It is expected that investors participating in the offering, subject to completion of the spin-off of Ferrari being announced today, will be entitled to participate in the spin-off and receive shares of Ferrari pursuant to customary provisions adjusting the conversion terms.

 

Unclear right now -- we'll have to wait until we get more information.

 

I'd love to see Marchionne & Elkann pull a Malone here. Issue a bunch of mandatorily convertible preferreds and then hedge out the dilution since no one believes they can get to the strike anyway.

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Anyone price in the dilution yet?

 

I typically don't like when companies sell shares, but the upside may be high enough here where I might be OK with it.

 

Well remember they bought back a bunch of shares they weren't really trying to as part of the move to become FCA. So net net it's not that big a deal

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