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Chrysler purchases remaining shares from VEBA Trust, announces funding plan

It's official: The Detroit Three is now The Detroit Two and The Fiat Subsidiary, Chrysler. Both the Italian carmaker and The Pentastar announced the completion of cash payments and a Memorandum of Understanding (MOU) on future payments necessary to make the Chrysler Group a wholly-owned subsidiary of Fiat. As previously detailed, Chrysler made a cash payment of $1.9 billion and Fiat North America made a cash payment of $1.75 billion to the Voluntary Employment Benefit Association (VEBA) run by the United Auto Workers union.
On top of that, Chrysler Group signed an MOU that agrees to payments of $700 million to the VEBA in four installments, the first of which was made concurrently with the other cash payments. And for you trivia mavens, the full name of the UAW is the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. So go impress your loved ones with that nugget after you check out the press release below.

Marchionne says Fiat Chrysler can make 6 million cars per year

The combined Fiat Chrysler Automobiles will see its production capacity increase from a projected 4.6 million in 2014 to 6 million units once it completes its integration, according to statements made by FCA CEO Sergio Marchionne.
"With the initiatives we will announce in May, six million is accessible," Marchionne said during a Fiat shareholders' meeting in Turin, according to The Detroit News. Marchionne is aiming to complete the merger between the Turin, Italy-based Fiat and the Auburn Hills, MI-based Chrysler by the end of this year.
Increasing production by 1.4 million units is no small order, particularly when combined Fiat and Chrysler sales have increased only modestly in the past few years - only 4.4 million units were sold in 2013, and while 4.6 million is projected for 2014, 4.5 million is also a distinct possibility. Six million units per year has been Marchionne's self-imposed goal for the combined automaker, according to The News, claiming that FCA would need to crest that point to achieve profitability.

How fracking is causing Chrysler minivans to sit on Detroit's riverfront

It's fascinating the way that one change to a complex system can have all sorts of unintended consequences. For instance, there are hundreds of new Chrysler Town and County and Dodge Grand Caravan minivans built in Windsor, Ontario, sitting in lots on the Detroit waterfront because of the energy boom in the Bakken oil field in the northern US and parts of Canada.
The huge amount of crude oil coming from these sites mostly use freight trains for transport, and that supply boom has resulted in a shortage of railcars to carry other goods. According to The Windsor Star, North American crude oil transport by train has gone from 9,500 carloads in 2008 to 434,032 carloads in 2013. Making matters worse, some North American rail infrastructure is still damaged because of this year's harsh winter, and that's slowing things down even further.
Chrysler admits to The Star that it has had some delivery delays due to the freight train shortage. In the meantime, it's using more trucks to deliver its vehicles. Trucking is a far less economical solution, partially because a train can carry so many more units at one time, but alternatives are slim. The Windsor plant alone has a deal for 33 trucks to distribute the minivans around Canada and the Midwestern US.