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Chrysler files for IPO

Chrysler has had a lot of owners over the past few years alone, from Daimler to Cerberus to Fiat and the federal government. But it could be poised to gain some more before long. Like, a lot more.
The automaker has just announced that it has filed with the US Securities and Exchange Commission to issue an Initial Public Offering of common stocks. Chrysler hasn't revealed how many shares will be offered and at what price, however the shares in question will not come out of Fiat's approximate 60% majority shareholding but instead out of the 40% minority stock held by the UAW's VEBA retiree healthcare trust. Reports suggest that the IPO, which is being handled by JP Morgan, could encompass approximately 16% of Chrysler stock, initially valued at approximately $100 million.
Lest you think this is all part of Sergio Marchionne's grand plan to consolidate Chrysler and Fiat, the two auto groups over which he presides, think again. The filing, which still needs to be approved by the SEC, comes at the insistence of the UAW. Negotiations between Marchionne's management team and the union over Fiat's acquisition of the VEBA shares have stalled. If they manage to come to an agreement, however, the IPO would likely be taken off the table. So don't go calling your broker just yet, but you can analyze the official announcement below.

Canada bailed out GM, Chrysler without really knowing what they were getting into

The Auditor General of Canada recently issued a report that makes at least one thing clear: it doesn't know how effective Canadian government loans given to General Motors and Chrysler in 2009 were in ensuring the viability of both companies. That year, the Canadian and Ontario governments dished out $10.8 billion CAD ($9.6B US) to GM and $2.9 billion CAD ($2.6B US) to Chrysler, but hadn't yet sorted out precisely how the funds were to be used before disbursing them. This happened in spite of the fact that, according to a piece in Bloomberg, the loans weren't meant to be handed out until authorities were clear on the manufacturers' plans for reorganization. In fact, federal officials hadn't finished establishing the concessions made by all the involved parties, the pension liabilities, nor the long-term soundness of the automakers' financial positions. On top of that, apparently it didn't keep close tabs on the money after loaning it: the report says that $1B CAD should have been applied to GM Canada pension plans but was instead given to GM to use. Chrysler repaid $1.7 billion, while GM handed back $3.8 billion and Bloomberg believes the feds in Ottawa still own 110 million shares of The General, which, at the stock price as of writing, would be good for another $3.9 billion. Those were mad, bad days, though, and we're not sure what point the report serves, other than to say, "Oh, by the way...." News Source: BloombergImage Credit: Bill Pugliano / Getty Images Government/Legal Chrysler GM bailout

FCA recalls over 200k Jeep Cherokees for windshield wiper static

Fiat Chrysler Automobiles is issuing a recall for over 200,000 versions of the 2014 Jeep Cherokee due to a problem with static buildup disabling the windshield wipers. FCA has identified 158,671 units in the United States. Another 18,366 vehicles are estimated to be affected in Canada, a further 3,582 in Mexico, and 26,049 outside of North America. The problem, according to the first statement below, results from static building up if the wipers are operated in dry conditions. The static could mess with the wipers' control module, rendering them disabled. To fix the problem, dealers will be instructed to install a ground strap to the module. In parallel, FCA is also offering incentives to the owners of certain trucks that were subject to recall but for which remedies were not immediately available. To encourage those owners to bring their older vehicles in for the required service, the automaker will disperse $100 prepaid cards for use at their discretion. The program is offered to owners of certain model year Jeep Grand Cherokee, Jeep Liberty, Chrysler Aspen, and Dodge Durango sport-utility vehicles, as well as certain Dodge Dakota and Ram trucks. Owners of the affected Grand Cherokees will have the option instead to take a $1,000 consideration toward the purchase of a new vehicle or for parts and service. The offers are only being extended under certain specific criteria, though. So if you think that could be you, you'll want to read through the conditions in the second announcement below. STATEMENT: CONTROL MODULE August 31, 2015 , Auburn Hills, Mich. - FCA US LLC is recalling an estimated 158,671 SUVs in the U.S. to help protect their control modules from static buildup that may potentially disable the vehicles' windshield wipers. An investigation by FCA US discovered static buildup may occur if the vehicles' windshield wipers are activated during dry conditions. Significant static buildup may affect a control module that powers the wipers. The Company is unaware of any related injuries or accidents. Affected are model-year 2014 Jeep Cherokee SUVs. An estimated 18,366 vehicles will be recalled in Canada, as will an estimated 3,582 in Mexico and 26,049 outside the NAFTA region. Dealers will install a ground strap to the control module to eliminate the potential for static buildup. Customers will be advised when they may schedule service, which will be performed at no cost.