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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.

Waymo self-driving taxis in Arizona are now carrying paying passengers

CHANDLER, Ariz. — Alphabet's Waymo on Wednesday launched a significant development in its costly, decade-long quest for autonomous transportation: Its self-driving taxis are now actually generating fares. With little fanfare, the company has begun charging passengers to use its driverless vehicles in a roughly 100-mile (160 km) zone in four Phoenix suburbs — Chandler, Tempe, Mesa and Gilbert — where it has been testing its technology since 2016. Producing revenue is a strategic milestone, putting Waymo ahead of U.S. rivals, primarily General Motors' Cruise Automation and Uber Technologies, which have yet to launch their own paid self-driving services. All are racing to win customers and recoup billions spent developing the technology. To use Waymo's service, dubbed Waymo One, riders must download an app and provide a credit card number, similar to ride-sharing services Uber and Lyft. A human driver will be behind the wheel, but only to intervene in case of emergency. Major challenges remain, starting with technical hurdles. A Waymo One taxi tested by Reuters last week proved slow and jerky at times. Whether customers will continue using the service once the novelty wears off remains to be seen. Regulations governing the industry across the country are an incoherent patchwork, a significant hurdle to fast expansion. Waymo would not say exactly how many of its cars would be on the road in Arizona. It said its around-the-clock service initially would be limited to "hundreds" of people invited to sign up last year. For now, pricing is roughly in line with that of Uber and Lyft. A 15-minute, 3-mile (4.8 km) drive taken by Reuters last week cost $7.59, just above the $7.22 offered by Lyft. "Over time, we hope to make Waymo One available to even more members of the public," Chief Executive John Krafcik wrote in a blog on Wednesday. "Self-driving technology is new to many, so we're proceeding carefully." 10 million miles, $1 billion The company has been testing its driverless cars for a decade. Its fleet, now numbering 600 vehicles, has logged more than 10 million miles on public roads in and around 25 U.S. cities. Alphabet does not disclose its total investment, but industry experts put that sum at well over $1 billion. Monetizing driverless technology has been slow going.

Share price falls on skepticism of Chrysler-Fiat five-year plan

Following this week's Fiat Chrysler extravaganza, where the Italian-American manufacturer announced its plans for the next five years, the Autoblog staff was cautiously optimistic of the company's future. Investors? Not so much.
Fiat saw its shares tumble 12 percent in Wednesday's trading, falling from 8.67 euros ($12.06 at today's rates) to 7.44 euros ($10.35) as of this writing, with blame partly going to the Italian half of the FCA marriage, which recorded a pretty significant drop in profits during the first quarter of this year.
The plan, which will cost around $77 billion over the next several years, is facing criticism from investors thanks in part to a 1.4-percent drop in Fiat's first-quarter profits, to 622 million euros ($862 million). That figure is also short of Bloomberg analysts' projections, which predicted $1.18 billion in profits before taxes, interest and one-time items.