2012 Chrysler 300 Limited on 2040-cars

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Fiat To Pay $3.65 Billion For Remaining Chrysler Shares

Italian automaker Fiat SpA announced Wednesday that it reached an agreement to acquire the remaining shares of Chrysler for $3.65 billion in payments to a union-controlled trust fund. Fiat already owns 58.5 percent of Chrysler's shares, with the remaining 41.5 percent held by a United Auto Workers union trust fund that pays health care bills for retirees. Under the deal, Fiat will make an initial payment of $1.9 billion to the fund, plus an additional $1.75 billion upon closing the deal. Chrysler will also make additional payments totaling $700 million to the fund as part of an agreement with the UAW. The deal is expected to close on or before Jan. 20, according to a statement from Chrysler. Sergio Marchionne, CEO of both Fiat and Chrysler, has long sought to acquire the union's shares in order to combine the two companies. "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," Marchionne said in a statement issued by Turin, Italy-based Fiat. The deal eliminates the need for an initial public offering of the union fund's stake, which analysts had previously valued at $5.6 billion. Fiat went to court last year seeking a judgment on the price, but the trial date was set for next September. Marchionne can't spend Chrysler's cash on Fiat's operations unless the companies merge. In recent months he made it clear that he preferred to settle the dispute without an IPO, but filed the paperwork for the offering in September at the trust's request. Chrysler's profits have helped prop up Fiat on the balance sheet as the Italian automaker struggles in a down European market. The Auburn Hills, Mich., automaker earned $464 million in the third quarter on U.S. sales of the Ram pickup and Jeep Grand Cherokee, its ninth-straight profitable quarter. The results boosted Fiat, which earned $260 million in the quarter. Without Chrysler's contribution, Fiat would have lost $340 million. UAW/Unions Chrysler Fiat

What will the next Presidential limo look like?

With recent news that the Secret Service has begun soliciting proposals for a new armored limousine, we've been wondering what the next presidential limo might look like. The current machine, nicknamed "The Beast", has a design based on a car that's no longer sold: the Cadillac DTS. If General Motors gets the job again, which wouldn't be a surprise considering the government still owns a chunk of the company, the next limo's shape would likely resemble the new XTS (below, left). But Cadillac hasn't always been the go-to car company for presidential whips.
Lincoln has actually provided far more presidential limousines throughout history than Cadillac. In fact, the first car modified for Commander-in-Chief-carrying duty was a 1939 Lincoln K-Series called "Sunshine Special" used by Franklin D. Roosevelt, and the last Lincoln used by a president was a 1989 Town Car ordered for George H.W. Bush. If President Obama wanted a Lincoln today, it would likely be an amalgam of the MKS sedan and MKT crossover, as illustrated above.
And what about Chrysler? The only record we could find of a President favoring the Pentastar is Nixon, who reportedly ordered two limos from the company during his administration in the '70s, and then another one, known today as the "K-Car limo," in the '80s after he left office. Obama, however, has a personal - if modest - connection to Chryslers, having owned a 300 himself before he took office. A 300-based Beast (above, right) would certainly earn the U.S. some style points.

Fiat brand chief reassigned then resigns amid flagging sales

Jason Stoicevich was replaced as head of the Fiat brand in North America just the other day. He was immediately reassigned to another job within Fiat Chrysler Automobiles. But according to Automotive News, Stoicevich quit the new job – and the company altogether – the very next day. The development comes amidst flagging sales for the Fiat brand in America. The introduction of the awkward-looking 500L multi-purpose vehicle has been largely regarded as a sales disaster in the US. Despite having just introduced the new 500X into the growing crossover market, and an overall upward trend across FCA group sales, the Fiat brand's figures have been dropping all year. While the Italian brand's volume has fluctuated from month to month compared to last year's sales, the number of cars its dealers sells on an average day has been firmly in decline. Fiat's downward trend reflects a general tendency in the market towards larger vehicles at the expense of smaller ones. However, the powers that be in Auburn Hills evidently felt that a change of leadership was in order, so it placed Dodge chief Tim Kuniskis in charge of all the company's mass-market passenger-car brands – namely Dodge, Chrysler, and Fiat – and moved Stoicevich to running the group's fleet and small-business operations. Stoicevich remained in charge of the company's California Business Center, but it seems as though he was as dissatisfied with the switch as his superiors were with the performance of the brand over which he presided, and so he apparently elected to step down and leave the company.