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Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Fiat Chrysler seeks $6.8 billion state-backed loan in Italy

MILAN — Italian Prime Minister Giuseppe Conte said on Saturday that Fiat Chrysler was entitled to apply for Italy's state-backed loans because the automaker employs thousands of people in the country, even though its legal base is located abroad. The Italian-American group confirmed on Saturday its Italian unit was working with Rome to obtain state guarantees on a 6.3-billion-euro ($6.8 billion) loan facility designed to help Italy's automotive industry, comprised of approximately 10,000 small and medium-size businesses. The coronavirus outbreak, which has hit Italy especially hard, slammed the brakes on demand for new vehicles and forced automakers to halt most production, burning cash. Fiat Chrysler Automobiles said in a statement that talks were ongoing with lender Intesa Sanpaolo for a three-year credit facility exclusively dedicated to the group's activities in Italy. Asked whether FCA, which has its legal headquarters in the Netherlands, could get a loan guaranteed by the Italian government, Conte said the group qualified. "We're not talking about the parent company, we're talking about the group's companies in Italy, which employ thousands of people," the prime minister said. FCA runs several plants and research and development centers in Italy, directly employing around 55,000 people. In addition, over 200,000 people work in Italy's 5,500 parts suppliers and 120,000 people in car dealers and service companies, with the automotive industry accounting for 6.2% of Italy's domestic product, FCA said. News that FCA was asking the Italian government for liquidity support had raised criticism. The ruling party PD's deputy president, Andrea Orlando, earlier on Saturday said on Twitter that if a company asked the Italian government for sizable financing, it had to bring back its legal base to Italy. The scheme is part of emergency measures the Italian government is making available to the country's businesses. It offers more than 400 billion euros' worth of liquidity and bank loans to companies hit by the pandemic. FCA said the state-backed credit facility it is seeking will have "the sole purpose of providing operational support for payments to Italian suppliers to support their liquidity and, at the same, supporting the restart of production and investment at Italian plants." The group has gradually restarted operations in Italy since the end of April. Related Video: Earnings/Financials Government/Legal Chrysler Fiat coronavirus

Junkyard Gem: 1982 Chrysler LeBaron Convertible

Things looked very grim at Chrysler during the late 1970s, as Oil Crisis-shocked car shoppers avoided buying thirsty land yachts and ancient-technology compacts in droves. The Carter administration grudgingly bailed out the company with loan guarantees in 1979 (leaving "small enough to fail" American Motors to seek help from the French government) and Chrysler needed a huge sales hit in a big hurry. Under the leadership of Lee Iacocca (freshly canned by Henry Ford II), Chrysler developed the modern, front-wheel-drive K Cars and the company was saved. The very first K Cars hit the road for the 1981 model year, and I'm always on the lookout for those historic early Ks when I'm searching for interesting bits of automotive history in junkyards. The '81 and '82s have become nearly impossible to find, but this once-plush LeBaron convertible appeared in a Northern California yard last month. While a bafflingly complex family tree of K-derived vehicles grew up in Chrysler showrooms through 1995 (including the hot-selling Caravan/Voyager/Town and Country minivans), the only "true" US-market K-Cars are the Dodge Aries, Dodge 400/600 coupe, Plymouth Reliant and Chrysler LeBaron. 1982 was the first model year for the K LeBaron and this car was built in March of that year, so we're looking at one of the very early successors to the Dodge Diplomat-based LeBarons of the 1970s. Chrysler developed a homegrown 2.2-liter, overhead-cam straight-four engine that proved very successful, and a 94-horsepower version of that engine was the base powerplant for the 1982 LeBaron. This car appears to have just about every option available that year, so of course the original buyer went for the 2.6-liter Mitsubishi Astron straight-four. With hemispherical combustion chambers, the 2.6 could be called a Hemi (a few Ks even got "2.6 HEMI" badging); horsepower came to just 93 in 1982, but the 132 pound-feet of torque beat out the 117 lb-ft of the Chrysler 2.2 that year. Silver-faced gauges and complicated radio controls were all the rage during the Late Malaise Era, and this car has both. Note the Chronometer next to the HVAC controls, a digital design with green vacuum-fluorescent display lifted from the previous-generation rear-wheel-drive LeBaron. The non-cloth bits of the convertible-top mechanism look decent enough, so perhaps some junkyard-shopping LeBaron owner will rescue them.