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Fiat buying rest of Chrysler in $4.35 billion deal, IPO avoided

Chrysler will now become a wholly owned member of the Fiat family, as it's been announced that the 41.46-percent stake in the Auburn Hills, MI-based manufacturer owned by the United Auto Workers' VEBA trust fund will be sold to the Italian company. Concluding the agreement will mark the closure of a piecemeal purchase process that could have resulted in an initial public offering.
The total cost of the sale will see the VEBA healthcare trust receive $4.35 billion, $3.65 billion of which will come from Fiat. $1.75 billion of that will be cash, while an additional $1.9 billion will be part of a "special distribution." An additional $700 million will be paid over four separate installments according to reports from Automotive News Europe and USA Today, although the shares will belong to Fiat following the first payment. The deal was reportedly initially struck on Sunday (though it is just being announced today), and is being portrayed as particularly good news for Fiat and Chrysler, which have now prevented the remaining shares going to the stock market in a UAW-forced IPO.
"The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment," Fiat CEO Sergio Marchionne said in a statement.

If Tesla Model 3 is successful, Sergio Marchionne will copy it

Fiat Chrysler CEO Sergio Marchionne hasn't hidden his disdain for electric vehicles, but he would copy the Tesla Model 3 if it is successful, according to Automotive News Europe. If Elon Musk "can show me that the car will be profitable at that price, I will copy the formula, add the Italian design flair and get it to the market within 12 months," Marchionne told Automotive News Europe during FCA's annual meeting in Amsterdam. In terms of pre-orders, the Model 3 is a success. Musk tweeted on April 7 that the company had over 325,000 reservations for the sedan, which he estimated were worth around $14 billion. The car will start at $35,000 before incentives. Marchionne, however, isn't optimistic Tesla can actually make the electric sedan work financially. "I'm am not surprised by the high number of reservations but you have then to build and deliver them and also be profitable," he told ANE. The FCA boss is a noted skeptic of EVs. In 2012, he said that the company only built the 500e because of California's zero-emissions vehicle mandate and to give engineers experience with the technology. He doubled-down in 2014 when he claimed FCA lost $14,000 on each 500e and said he would rather people didn't buy them. More recently, he infamously said "you'd have to shoot me first," before he'd allow a fully electric Ferrari. Related Video:

2013 Chrysler 300C John Varvatos Limited Edition

Who is John Varvatos? If you're like me, that's the question you were asking after seeing commercials that advertised a limited-edition model of the Chrysler 300 with this mystery man's name attached. If you're not like me and consider yourself a fashionista even in the slightest, then you probably already know that John Varvatos is a successful menswear designer who cut his teeth in the fashion houses of Ralph Lauren's Polo and Calvin Klein. He's also a native of Detroit, which makes the joining of his brand and that of Chrysler's more intelligible, what with the Auburn Hills-based automaker still eking efficacy from its nearly three-year-old "Imported from Detroit" tagline.
Whenever one of these co-branded vehicles crosses my path, I try to judge them according to some simple questions. The first is, does the co-branding make sense for the target audience? And the second is, do the changes improve or diminish the experience of the standard vehicle? With this partnership, both brands are clearly aiming at the same target, or perhaps Chrysler hopes its aim will improve by partnering with the JV set, bringing it closer to that bullseye of style-conscious trendsetters.
The second question, meanwhile, can be answered with your eyes alone, as no mechanical changes are included among the Varvatos upgrades. Despite that, the 300C John Varvatos Edition is priced above - well above - all other 300 sedans save the 300 SRT8, suggesting that cool is not sold by the barrel (was it ever?) and Mr. Varvatos is a dealer in the stuff. Yet while I couldn't actually tell you if John Varvatos was a designer or a ditch digger before Chrysler introduced us, I do like his style, and the man knows how to dress a car.