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Fiat board makes Chrysler merger official, approves $5.4B bond sale

Fiat's board of directors has officially approved the merger plan that will see the conglomerate's automotive operations merged with Chrysler into the new Fiat Chrysler Automobiles.
The plan essentially provides a road map for the structure of the new company. It includes provisions for Fiat shareholders - one Fiat share will translate to one share of FCA common stock. The new company will also include a loyalty voting structure, which will provide for shareholders of Fiat stock or those that have held FCA stock for at least three years. According to the plan, these shareholders would see their voting power double, with two votes for every share of FCA's common stock. The overall merger plan still needs to be approved by the company's shareholders.
In other Fiat-related news, the company's board has announced a bond issuance of four billion euro ($5.4 billion). The new bonds should provide the company with a degree of flexibility in refinancing debts associated with the merger plan.

Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.

Chrysler Town & Country plug-in hybrid minivan coming in 2015

Among the multitude of models that Fiat Chrysler Automobiles announced as part of its five-year production plan in May was a plug-in hybrid version of the Town & Country minivan for sometime in 2016. However, according to the latest pronouncement from company CEO Sergio Marchionne, that timetable may have been moved forward quite a bit.
Marchionne told Automotive News at the Paris Motor Show that the PHEV minivan would now be launching in late 2015. That strategy does seem a bit confusing, though, because the next-gen platform for the T&C isn't supposed to hit the road until sometime in 2016, according to the plan. So it's not clear whether the boss means the PHEV rides on the current chassis or if the new model is going on sale early.
The technology underpinning the new plug-in hybrid has been shrouded in mystery. However, during the five-year plan meeting, FCA claimed the model could earn fuel economy figures around 75 mpge. Chrysler previously tested a 25-unit fleet of them as part of a demonstration test in Auburn Hills, MI, in 2012, but that didn't go so well.