Marchionne is confident that the situation with Chrysler will be entirely clear in the third quarter. Then, the new organization will group entirely clear. And currently, Fiat is negotiating with banks to make the purchase of 41.5% of Chrysler Group is not yet owned by Fiat.
Marchionne said he preferred to avoid a takeover bid, complicating the purchase because the value of those shares would raise the roof at the prospect of acquisition by Fiat. Still recognized that the chances of Fiat and Chrysler end up being a single entity, ie 100% of Fiat-controlled Chrysler, are 50/50.
Currently Fiat depends heavily on the Chrysler profitable. If not for the U.S. group Fiat’s overall performance would have been a loss of 1,004 million euros.
Negotiations with VEBA, the pension fund for workers of Chrysler and 41.9% owner lacks Fiat, not be easy. The entity is required to close a good deal for workers. Currently, the two sides are talking with banks to determine what the best option. To make matters worse, political instability, which leads to funding problems for Italy (the famous risk premium) in Italy means that eventually, Fiat will also see the interest you pay on up funding. And that’s not good for their results or to buy the latest installment of Chrysler.
