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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 joining virtual CES with in-depth tours and Jeep Wrangler 4xe in AR

CES is sort of, technically happening, but it won’t be the CES weÂ’ve all become accustomed to over the years. Automakers will be doing their best to participate virtually, assuming they decide to join in the festivities at all. FCA is one that will have a little nugget of tech to share with us. A few main experiences will be made available to anybody with a computer. FCAÂ’s main draw is meant to be “highly detailed interactive product tours” where you can get to know a number of vehicles in a virtual world and hear from a “virtual brand ambassador” throughout the tour. You wonÂ’t be able to sit in and crawl through the cars like a normal auto show for the public, but FCA is promising a rather immersive experience online. The guided tour through the cars and technologies will be available in 12 FCA vehicles, two of those being the new Jeep Grand Wagoneer Concept and Alfa Romeo Stelvio Quadrifoglio. FCA plans to offer in-depth talks about how it tests vehicles, too. There are demonstrations planned for wind tunnels, the four-post shaker, an advanced drive simulator and general performance testing. Additionally, FCA plans on providing more insight into Uconnect 5 and vehicle electrification systems. WeÂ’re guessing the latter will offer up details on the Wrangler 4xe. The plug-in hybrid Wrangler will also be the star of FCAÂ’s AR play at CES. Everybody will be able to scan a QR code on FCAÂ’s site, then have access to a Wrangler 4xe on their phone. YouÂ’ll be able to “put it” in your driveway virtually, change the colors and get up close and personal with the interior.  All of this will launch on fcaces2021.com at 9 a.m. ET on January 11 (official first day of the virtual CES show), so surf on over there next week if you want to check it out. Related video:

Jeep will build old Wranglers next to new ones in Toledo

Jeep made a lot of people happy when it confirmed that the next-generation Wrangler would continue to be built in Toledo, OH. Now, news is breaking about the lengths the automaker will go to in updating its northern Ohio factory. There's good news for Jeep dealers (more Wranglers to sell!), Jeep fans (more JKs to buy!), and Jeep itself (more money to be made!). According to a report from Automotive News, capacity at the factory will be increased to 350,000 units per year. That's around a 50 percent increase over what the Toledo complex can currently manage and is, according to Jeep boss Mike Manley, part of a move to keep production "at the right place" so "supply [stays] just behind demand." The other big news revealed by the AN report focuses on the future of the current Wrangler. Yes, the current JK has a future. It'll continue to be built at the Toledo factory up to six months after it successor arrives in showrooms, a move that's partially down to the way Jeep is shuffling production about. Toledo currently builds the Cherokee on a unibody production line – it'll continue to do so until March of 2017, when production will move to Belvidere, IL. The unibody line in Toledo will then be converted for body-on-frame production, which should take about six months. But during that time, the current JK (likely rebadged as a "Wrangler Classic") will continue to be built alongside another line of next-generation Wranglers, keeping dealers supplied with the today's Wrangler through March of 2018. The two Wranglers will overlap for about six months. This is all very good news if you've been waiting to pull the trigger on today's Wrangler. But move quickly – the clock is officially ticking. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano/Getty Images Plants/Manufacturing Chrysler Fiat Jeep FCA toledo Mike Manley