fiat\s 435bn chrysler deal creates \global automaker\
Last Updated : GMT 22:52:33
Arab Today, arab today
Arab Today, arab today

Fiat\'s $4.35bn Chrysler deal creates \'global automaker\'

Arab Today, arab today

Arab Today, arab today Fiat\'s $4.35bn Chrysler deal creates \'global automaker\'

Auburn - UPI

Fiat SpA's $4.35 billion deal to buy the rest of Chrysler Group LLC will let the combined U.S.-Italian company become a "global automaker," Fiat's chief said. The agreement with the United Auto Workers' healthcare trust for retired Chrysler union workers for its 41.5 percent of the once-bankrupt U.S. automaker ends the need for an initial public offering of Chrysler shares, the Detroit Free Press and Wall Street Journal said. Fiat, which acquired control of Chrysler as part of a 2009 bailout deal brokered by the Obama administration, owns 58.5 percent of Chrysler. The healthcare trust, known as a voluntary employee beneficiary association under federal tax law, was created by the UAW and each Detroit automaker in 2007 to help alleviate the crippling costs of retiree healthcare under contracts negotiated years earlier, before healthcare costs soared much higher than the general inflation rate, the Free Press said. Once the deal is completed Jan. 20, Chrysler will no longer be an independent business. "In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments," Chief Executive Officer Sergio Marchionne said in a statement Wednesday. "The unified ownership structure will now allow us to fully execute our vision of creating a global automaker," he said. U.S.-born Fiat Chairman John Elkann said he had "been looking forward to this day from the very moment that we were chosen to assist in the rebuilding of a vibrant Chrysler back in 2009." Robert Naftaly, chairman of the committee governing the trust, said in a statement, "This agreement is in the best interests of the trust's UAW Chrysler retiree members and their families who rely on the trust to provide vital healthcare benefits." The trust provides healthcare benefits to more than 117,000 UAW-represented Chrysler retirees, spouses and dependents. It will increasingly need to covert its Chrysler shares into cash to make the medical payments, Center for Automotive Research analyst Kristin Dziczek told the Free Press. "It wasn't in either party's interest to go through with an IPO," she said. "Since the UAW trust can't buy healthcare coverage with Chrysler shares, it was in their best interest to get as much cash as possible." At the same time, Marchionne needs to consolidate the companies' engineering and manufacturing operations and needs Chrysler's cash to finance Fiat's costly European restructuring plan in Europe, where Fiat has suffered from a long slump in sales, the Journal said. That plan calls for the export of more Alfa Romeo sports cars and Maserati luxury models from Italy and production of a Jeep subcompact in Italy, the Free Press said. Marchionne hopes to create the world's No. 7 automaker, with combined sales of 6 million vehicles, the Journal said. Under the deal's terms, Fiat will pay the trust $3.65 billion for its Chrysler stake, which it got as part of Chrysler's government-led bankruptcy in 2009. Fiat will use $1.75 billion of its own money and $1.9 billion of Chrysler's cash to make the payment. Chrysler will also pay $700 million to the trust in four installments. Once the agreement is complete, Fiat will have spent $3.7 billion of its own money and a total of $6.3 billion to buy Chrysler.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fiat\s 435bn chrysler deal creates \global automaker\ fiat\s 435bn chrysler deal creates \global automaker\

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fiat\s 435bn chrysler deal creates \global automaker\ fiat\s 435bn chrysler deal creates \global automaker\

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today 'Trash islands' off Central America indicate

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Solaf happy for participating in “Hotline”

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday