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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.

Poor Chrysler 200 sales blamed for 1,420 layoffs in Sterling Heights

FCA will indefinitely lay off a total of 1,420 workers from its Sterling Heights Assembly and Stamping plants on July 5, according to The Detroit News. This decision will cut a 1,300-person shift that builds the Chrysler 200, and it will also affect 120 people who stamp the sedan's components. The company's statement said the decision would "better align production with demand." FCA plans to give these folks open full-time positions as they become available. Chrysler 200 sales are down 63 percent to just under 18,000 units so far in 2016. After the cuts, there will still be one shift to build the 200, but even then the model won't have much of a future. In January, CEO Sergio Marchionne announced that FCA would discontinue production of the 200 and Dodge Dart because customers were no longer interested in small sedans. All of the roughly 3,000 hourly workers at Sterling Heights have been on a temporary layoff since February 1, according to The Detroit News. They don't go back to work until next week. United Auto Workers Vice President Norwood Jewell released a statement saying that while the "shift reduction at Sterling Heights Assembly is unfortunate, it is not unexpected." However, he was fairly upbeat about the cuts because FCA plans to increase production capacity for trucks and SUVs. "I believe that in the long term this move will be a positive one for our members and the company," he said. During last year's labor negotiations, the UAW's deal reportedly included an agreement for FCA to move 200 and Dodge Dart production to Toluca, Mexico, but the company promised to build the Ram 1500 at Sterling Heights Assembly. FCA spokesperson Jodi Tinson gave no comment about future vehicles at the factory when asked by Autoblog. Related Video: Statement Regarding Indefinite Layoffs at SHAP In order to better align production with demand at its Sterling Heights Assembly Plant, FCA US notified the State of Michigan, the City of Sterling Heights and the UAW today that it intends to return the plant to a one shift operation, beginning July 5. The Company will place indefinitely laid off employees in open full-time positions as they become available within the Detroit labor market based on seniority. A Statement from UAW Vice President Norwood Jewell on FCA Announcement about Sterling Heights Assembly: While today's announcement of a shift reduction at Sterling Heights Assembly is unfortunate, it is not unexpected.

Ram confirms Fiat Ducato vans to form new Promaster series for US

Chrysler has officially confirmed that Ram will develop an all-new large van for the US market based on the Fiat Ducato. The commercial rig will go on sale in the third quarter of next year, joining the Ram C/V on the company's professional van line. Expect to see the Promaster face off against the Ford Transit and revised Chevrolet Express.
Chrysler is pretty skimpy on details when it comes to the Promaster, but it has said the vehicle will make use of "familiar Ram Truck styling cues." The van will reportedly also bow with powertrains targeted specifically at the North American market.
Chrysler and Ram made the announcement ahead of the LA Auto Show alongside news that the company will launch a new Ram commercial truck division.