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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.

Is Chrysler's 'America's Import' campaign outdated or offensive? [w/poll]

Chrysler launched its America's Import campaign with a splashy ad during the Super Bowl starring Bob Dylan and featuring a whole bunch of patriotic imagery that included Marilyn Monroe, James Dean, factory employees and, of course, the city of Detroit. Since then, the brand has followed the original spot with even more ads using the same tagline. Not everyone is pleased, it seems, including The Detroit Free Press auto critic Mark Phelan, who's fed up with the marketing. In an editorial for the newspaper, Phelan claims that it's insulting to the US auto industry and its workers.
"The phrase 'America's import,' with its suggestion that 'import' equals 'better,' feels terribly dated, a relic of the 1980s. It's the rhetorical equivalent of hanging a pastel-hued 'Miami Vice' poster on your office wall," writes Phelan in the piece. Also, since some of the brand's cars are made in Canada, the line isn't even entirely true, he claims. Phelan goes on to praise the company's earlier Imported from Detroit commercials for getting the right message across and showing pride in the city.
While "America's Import" might be the tagline for Chrysler's ads, it's not the whole message. Subsequent ads keep the hard-working, patriotic imagery from the original Super Bowl spot but put a bigger emphasis on the Chrysler 200 that the commercials are meant to sell.

Chrysler slows minivan production, hasn't built VW Routan this year

Chrysler has slowed production of its Town and Country and Dodge Grand Caravan minivans this week, Automotive News reports. The Windsor, Ontario plant will cut its three shifts from eight hours each to four hours each in an effort "to align production with market demand," a Chrysler spokesperson told AN. Chrysler also builds the closely related Routan minivan for Volkswagen at its Ontario facility, but has not built a single example thus far in 2013.
Sales of Chrysler's minivans fell 15 percent for the first two months of 2013, and a large part of that has to do with the 26-percent drop of the Grand Caravan alone (the T&C was only down by one percent). According to Automotive News data, as of March 1, Chrysler had an unsold inventory of 24,713 Town and Country models and 18,547 Grand Caravans - a 69- and 43-day supply, respectively.
"No sense running full speed now, then have a lot of vehicles sitting around a few months down the line," Chrysler spokeswoman Jodi Tinson told AN. Full production is expected to resume again on March 18.