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Fiat and UAW back at negotiating table over Chrysler stake

We knew there'd be no Chrysler IPO before the end of this year, but Fiat is determined to get the best run going into 2014 and is back at the poker table with the UAW. The delay was said to be Chrysler's desire to clean up a tax issue with the IRS; turns out that also bought the carmaker time to try and close a deal for the UAW's 48.5-percent stake in the company before the IPO happens.
Whereas the price Chrysler was willing to pay was once more than $1 billion under the UAW's asking price, the gap has closed to just $800 million of late. A recent valuation of the company at $10 billion - a valuation the UAW has disputed - means Fiat would be looking to pay about $4.2 billion instead of the $5 billion that the UAW seeks. But the UAW needs to hold out for the highest amount it can get because its pension obligations through the Voluntary Employee Benefit Association (VEBA) are $3.1 billion greater than the VEBA's assets, which include the Chrysler stake.
There's a clause in the agreement that Fiat can buy the VEBA shares for $6 billion, but Fiat CEO Sergio Marchionne has said that the UAW "should buy a ticket for the lottery" if they even want $5 billion. The UAW, though, has more time to wait; it's Fiat that wants access to Chrysler's $11.9-billion war chest and that would like to avoid the risk of paying the full $6 billion for the UAW share if the float really takes off. With other valuations of Chrysler as high as $19 billion, a hot IPO could make that $6 billion look like a bargain.

FCA scion John Elkann tries to pull off a Marchionne-sized merger

MILAN, Italy — When John Elkann lost his ally last year with the sudden death of Sergio Marchionne, some questioned whether the softly-spoken scion of the Agnelli clan would be able to emerge from his shadow to ensure Fiat Chrysler's future. But New York-born Elkann, who became Fiat chairman in 2010, acted decisively to fill the vacuum left by the larger-than-life Marchionne and get closer to the big merger deal the legendary executive was unable to deliver. At just 28, Elkann was thrust into the role of Fiat vice chairman after the deaths of his grandfather and great-uncle "because there was really nobody else" to take the wheel. For Elkann, who got his first taste of the car industry as an intern at a factory producing headlights in Birmingham, England, the first 18 months with responsibility for the family-owned carmaker and its long heritage were "terrible." But from that low point, Elkann, 43, is now trying to merge Fiat Chrysler (FCA) with French rival Renault to form the world's third largest carmaker and tackle new challenges facing the industry. Elkann will become chairman of the merged FCA-Renault if the deal goes ahead, ensuring the Agnelli dynasty plays a central role in the next chapter of automotive history. At an event in Milan on Monday, the usually-shy Elkann looked happy and confident. His first big break came with an instrumental role in persuading Marchionne, who was running one of the businesses owned by the Agnelli family, to become chief executive in 2004 and give Fiat "a new start," Elkann said in a "Masters of Scale" podcast last year. Fiat was at the time almost on the brink of collapse. This involved a "very long night ... and many grappas" but proved to be a turning point in the fortunes of the Italian company founded by Elkann's great-great-grandfather Giovanni Agnelli, which built its first car in 1899. In 2005, Elkann backed Marchionne in negotiating the breakup of an alliance Fiat had entered into with General Motors in 2000, receiving $2 billion from GM in return for canceling a deal that could have required GM to buy the remainder of Fiat Auto. Marchionne then used GM's money to fund a turnaround at Fiat, which involved taking the Italian carmaker into a transformation alliance and then full-blown merger with U.S. automaker Chrysler as Elkann agreed to the Agnellis loosening their grip.

Here are all the vehicles sold by the 12 brands of the Fiat Chrysler PSA merger

Sven Gustafson and Ronan Glon contributed to this report. Whether or not the formal merger between Italian-American automaker Fiat Chrysler and European conglomerate PSA Group means the return of Peugeot to the U.S., one thing’s for certain: The combined company will have a truckload of different brands. Sorting out what the deal means for all of them, including where they are sold and built, and whether and where there is product overlap, will be a key question for the two companies as they formalize the merger over the next 12 to 15 months. So far, both sides have steadfastly insisted that no job cuts or plant closures will result from the tie-up. WeÂ’ll see about that. In the meantime, weÂ’ve compiled an alphabetical list of all the vehicles currently sold in Europe and in North America by the various FCA and PSA brands, along with the years they debuted. We've gone into more detail about the European vehicles you might be less familiar with. The joint empire also has an antique store's worth of heritage-laced models and dormant brands, like Plymouth, Imperial, Simca, and Panhard, and it would have been even bigger had FCA not spun off Ferrari in early 2016. Alfa Romeo A legacy Italian sports car brand with roots in racing, Alfa Romeo has been struggling with declining U.S. sales. Giulia (2015): AlfaÂ’s rear-wheel drive sports sedan competes against German luxury sedans in North America and Europe. 4C (2013): The lightweight mid-engine rear-wheel-drive sports car is being phased out. Stelvio (2016): The Stelvio is a small luxury performance crossover that competes against the likes of the Porsche Macan and BMW X3 and is sold in both Europe and North America. Giulietta (2010): Sold in Europe, this compact hatchback is AlfaÂ’s entry-level model. After initially planning a rear-wheel drive 2020 update, the Giulietta is reportedly being nixed as part of FCAÂ’s latest product plans.   Chrysler Despite lending its name to its parent company, questions abound about the future of this legendary but faded brand, which is not offered in Europe. 300 (2011): Despite rumors of its pending demise, the four-door sedan lives on mostly unchanged for the 2020 model year, at least. Pacifica (2016): The successor to the Town & Country is ChryslerÂ’s bestselling model by a long shot and comes in gas-only and plug-in hybrid versions. Voyager (2019): ChryslerÂ’s newest minivan launches as its entry-level minivan for the 2020 model year.