2018 Chrysler Pacifica Hybrid Touring L on 2040-cars

Auto blog

Fiat seeking $10B in financing to buy Chrysler

As Fiat looks to become the full owner of Chrysler, all it has standing in its way is the retiree trust of the United Auto Workers, which currently holds the remaining 41.5 percent of the company as the result of the Pentastar's bankruptcy deal. The Detroit News is reporting that that Fiat is currently talking to numerous banks in an attempt to raise around $10 billion to fund the purchase of Chrysler's remaining stake with enough left over to refinance the debt of both companies. We've known that Fiat has been working to obtain the capital to buy out Chrysler for some time now, but this is the first time we've seen Fiat tip its hand about how much cash it thinks it will need to close the deal.
The first order of business is a legal dispute over the value of the UAW's stake in Chrysler, which the report indicates could cost Fiat around $3.5 billion. The acquisition of remaining shares could happen by this summer, but it sounds like CEO Sergio Marchionne (above) might not be ready for a full merger until next year.

Fiat-Chrysler and Peugeot unveil burgeoning Stellantis supergroup's new logo

Stellantis, the entity formed by the merger between Fiat-Chrysler Automobiles (FCA) and PSA Group, has revealed its logo. It's as anonymous as the name of what will become the world's fourth-largest carmaker. Executives explained the logo symbolizes the rich heritage of the group's founding companies, and the unique combined strengths of the new conglomerate's 14-brand portfolio. While that's certainly one way to look at it, finding an iota of heritage in the Stellantis logo requires an unusually vivid imagination. It consists of the company's name in a sans serif font on a blue background. Designers removed the horizontal bar from the letter A, and they surrounded it by four rows of increasingly small dots vaguely arranged like stars in a galaxy. Chrysler helped NASA develop and build the Mercury-Redstone rocket, but we doubt that's what the galaxy-shaped logo is trying to remind us of. Nothing about it suggests Stellantis bundles some of the oldest and best-known car manufacturers in the world. It wouldn't look out of place in an ad for a credit card company, in a brochure for a frequent flier program, or on an over-the-counter pain reliever box, and that was likely intentional. It's a corporate logo that's going to appear on pens, name tags, coffee mugs, and a wide variety of paperwork, so it doesn't need to be eye-catching or ignite excitement — it'll never show up on a car. Stellantis Charger Hellcat? Nope. Jeep Wrangler Unlimited Stellantis Edition? Not happening, either. Chrysler, Peugeot, Dodge, Opel, Vauxhall, Jeep, Alfa Romeo, Ram, Citroen, Fiat, Maserati, and the other odds and ends that will be dumped in the Stellantis melting pot will carry on with their respective identities and naming systems. Stellantis it is, then. Expect the new logo to appear on employee payrolls and other official letterheads after the $38 billion 50:50 merger is finalized. Both sides said they plan to complete the merger in the first half of 2021.

Sergio: Two-tier wage structure eliminated in FCA deal with UAW [w/video]

The two-tiered wage structure that governs the way domestic car companies pay their unionized employees – and rankles many of them in the process – could soon be a thing of the past. In a tentative deal seen as a bellwether for other ongoing negotiations, the United Auto Works and Fiat Chrysler Automobiles reached a tentative agreement on a four-year contract that would disband the two-tier structure, in which some workers earn higher hourly wages for performing the same job, over time. Officials who announced the tentative agreement late Tuesday in Detroit were short on details of its contents and union members still must ratify it. But FCA CEO Sergio Marchionne said the two-tiered structure will disband by the end of the contract. "The team has crafted together a very thoughtful process, where the issue will go away, go away over time," he said. Further details weren't divulged. Union negotiations with Ford and General Motors are ongoing, so hammering together a deal that sheds the two-tier structure with Chrysler first could set a precedent followed by the other members of Detroit's Big Three automakers. Other key issues that emerged in negotiations with FCA included escalating health-care costs and rewarding workers for the health of the auto industry. But dealing with the two-tier structure, born as GM and Chrysler circled bankruptcy during the Great Recession, was something the UAW wanted to confront. "The UAW has a philosophy about the economic balance of this country and the inequality, and our mission is to bridge the gap in this country," UAW president Dennis Williams said. "It's gotten out of whack. ... We don't want to share anything, and I truly believe that corporations that have that set of mind have lost their way." The UAW's executive board was expected to review the tentative agreement this morning before a union membership vote is scheduled. For Marchionne, who skipped the Frankfurt Motor Show to shepherd the negotiations during their final hours, the tentative agreement means he can shift his concern back toward pushing an FCA merger with General Motors or another company and touting the idea of industry consolidation in general. "The other side of this is capital usage in this business, which is something that remains unsolved," he said. "It makes the labor side sort of pale in comparison, given the magnitude of the potential synergies and benefits we'd be deriving from an intelligent approach.