Fiat Increases Its Stake In Chrysler

At 68% ownership, they have the controlling interest in the company... what does 100% get them that 68% does not? Car companies share platforms and technology with far lower owernship stakes.

This makes me very suspicious of Fiat's intentions.....

does that mean anything with regards to honoring labor contracts?

Sad that the Unions have no interest in having ownership in the company they work for. The Union Leaders just want the cash to squander and then later on tell the people that paid in there is nothing left for them after they have used up the money. I see this not ending well for the union.

Sad that the Unions have no interest in having ownership in the company they work for. The Union Leaders just want the cash to squander and then later on tell the people that paid in there is nothing left for them after they have used up the money. I see this not ending well for the union.

Again with the tin-foil hat... :tinfoil:

VEBA is not managed by the UAW though the UAW is the primary beneficiary. VEBA is the vehicle to distribute contractual benefits to retirees and former employees of Chrysler and GM. It is not meant to be an indefinite fund and they do need the cash to pay those benefits. Selling those shares was planned from the start... the only reason this is news is because Fiat will be the largest purchaser.

Sad that the Unions have no interest in having ownership in the company they work for. The Union Leaders just want the cash to squander and then later on tell the people that paid in there is nothing left for them after they have used up the money. I see this not ending well for the union.

Again with the tin-foil hat... :tinfoil:

VEBA is not managed by the UAW though the UAW is the primary beneficiary. VEBA is the vehicle to distribute contractual benefits to retirees and former employees of Chrysler and GM. It is not meant to be an indefinite fund and they do need the cash to pay those benefits. Selling those shares was planned from the start... the only reason this is news is because Fiat will be the largest purchaser.

We'll if I have a Tin Hat on so be it, but the way the media has stated this left me with the impression that VEBA and the UAW were joined at the hip as one big group different divisions. I appreciate the clarity as I had not heard it put this way before.

Still sad that they could not think of a way to hold onto shares as part of the investment portfolio that generates the funds to pay the retire benefits.

VEBA needs to be free to make investment changes as much as they want to... the truth may be that ownership of Chrysler may not be in their best long term financial interests or having such a large chunk of their assets tied to a single entity may be considered high risk.

With over 2/3 ownership, seems like they'll be able to do whatever they want. And I don't think they bought Chrysler because they loved what Dodge has, or the 200 or 300. I think they saw Jeep as a profitable unit and this is a way to get Fiat/Alfa out of Europe and into the American Market.

With over 2/3 ownership, seems like they'll be able to do whatever they want. And I don't think they bought Chrysler because they loved what Dodge has, or the 200 or 300. I think they saw Jeep as a profitable unit and this is a way to get Fiat/Alfa out of Europe and into the American Market.

You could be right that Fiat wants to try and crack the nut again of the US market, but then they are going to have to change their designs as currently the Fiat lineup will not appeal to the majority of the US population. Then again, they could be looking to do what Europe really needs to do and that is close down the over capacity production lines and lay off people and this could allow them to swallow and consolidate and force change that gov's have been fighting just for political survival.

I think the next 3-5 years we will still see 2-3 more companies go to the History books as the global corporations consolidate and streamline product plans. Next big hiccup will come from China where they have a ton of gov supported car companies that are cloning what is in the market already and once they try to push out beyound China, some will make it and most will die.

With over 2/3 ownership, seems like they'll be able to do whatever they want. And I don't think they bought Chrysler because they loved what Dodge has, or the 200 or 300. I think they saw Jeep as a profitable unit and this is a way to get Fiat/Alfa out of Europe and into the American Market.

It's not often that you and I agree... but when we do.. we really do.

To dfelt's point, I don't think the Dodge car lineup is too appealing to the US market either.

I think the US car market, especially as 2025 CAFE standards draw near, is going to become more like Europe's car market. Fiat's lineup may not appeal to the US market now, but as the current 18-25 year olds start buying new cars over the next 5-10 years, they may like something like a Fiat.