Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
      USW alleges COVID-19 violations at Kumho plant
    • Conti starts production of ‘HL' load index tires for select OE customers
      GM banking on 'BrightDrop' EV to build commercial van business
      Stengel promoted to president of NAPA parent Genuine Parts Co.
      Former auto exec Tyrone Jordan joins Cooper board of directors
    • COVID-19 takes huge bite out of European tire markets in 2020 —ETRMA
      U.K. race series extends contract with Goodyear through 2026
      New round of Paycheck Protection Program funding opens
      H&H broadens precure OTR business with Continuum mold acquisition
    • Evolving delivery trends good for CV tire sector — Cooper exec
      Conti adding light-duty products to General Tire OTR tire lineup
      GM banking on 'BrightDrop' EV to build commercial van business
      Gary Price to head Love's Truck Care operations
    • New stimulus package fixes PPP loan confusion
      USW opposes Taiwan tire makers' dumping counterproposal
      New round of Paycheck Protection Program funding opens
      Taiwan tire makers propose settlement of import duties case
    • Global OTR Library adds wheels, rims to portfolio
      Conti starts production of ‘HL' load index tires for select OE customers
      COVID-19 takes huge bite out of European tire markets in 2020 —ETRMA
      Evolving delivery trends good for CV tire sector — Cooper exec
    • U.K. race series extends contract with Goodyear through 2026
      Goodyear Racing staying on track
      General Tire Canada renews sponsorship deal with Raceline Network
      Indy Autonomous Challenge: High-speed, head-to-head, no drivers
    • Hankook doubles size range of Ventus V2 all-season UHP line
      Conti adding light-duty products to General Tire OTR tire lineup
      Goodyear-brand belts back on the market under licensing arangement
      Kumho launches commercial LT, performance tire lines
    • Hankook doubles size range of Ventus V2 all-season UHP line
      New stimulus package fixes PPP loan confusion
      Goodyear-brand belts back on the market under licensing arangement
      WTC hosting webinar Jan. 20 on load-capacity standards
    • AMRA to host 5 educational webinars in Feb., March
      Shocks/struts maker KYB unveils video training series
      Bauer Built completes expansion at Neb. facility
      Marinucci: Basic steps to email efficiency
    • WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
      AAPEX: Using social media to promote your business
    • New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
      Latest COVID relief bill includes $325B in small-business support
    • Papadimitriou to leave position with Pirelli after six months on job
      SRNA increasing prices on Dunlop motorcycle tires
      Sentury Tire hires Martin Winter as global OE technical director
      USW opposes Taiwan tire makers' dumping counterproposal
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TMPS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
March 31, 2014 02:00 AM

Chrysler to remain a U.S. legal entity

Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By Jennifer Clark and Luca Ciferri, Crain News Service

    TURIN, Italy (March 31, 2014) — Chrysler Group L.L.C. will remain a U.S. legal entity after the completion of the Fiat Chrysler merger later this year, Fiat and Chrysler CEO Sergio Marchionne said.

    Chrysler's company name and legal form most likely will change, but how that will happen is a minor detail “not worth being discussed,” Mr. Marchionne told reporters on the sidelines of the Fiat annual general meeting today in Turin.

    (Crain News Service photo)

    Sergio Marchionne: Growth in shipments will be largely driven by higher volumes in North America and Asia-Pacific.

    Mr. Marchionne added that the timing of Fiat S.p.A.'s extraordinary shareholders meeting to approve the new company name Fiat Chrysler Automobiles and the primary stock listing in New York is still unclear.

    “We first need to get a clearing from the SEC (Securities & Exchange Commission) on the filing documents and then we can call the Fiat shareholder meeting (here in Italy),” he said.

    Mr. Marchionne added that he hopes to get Fiat shareholder approval by the summer and have the new company operative and listed in New York by year-end.

    Fiat S.p.A.—which bought control of Chrysler—will be incorporated into FCA NV using a recent European law related to cross-border mergers within the European Union. These rules do not apply to Chrysler Group L.L.C., which is a non-EU entity, and this is the reason why Chrysler Group L.L.C. will remain a U.S. legal entity.

    FCA NV will be a legal entity incorporated in the Netherlands, and will have its tax residency in the U.K.

    Mr. Marchionne confirmed FCA shareholders' meetings should take place in the Netherlands, while FCA board of directors meetings would be held “preferably but not compulsorily” in the U.K.

    Boosting capacity

    Earlier March 31, Mr. Marchionne said the combined auto maker will have the potential to boost annual deliveries as much as 55 percent to 7 million vehicles following the merger with Chrysler.

    “We have the capability to reach that level of production,” he said during the annual meeting. “We are equipped to go on the attack against the giants in our industry.”

    Mr. Marchionne, who will unveil his strategic plan for the combined company in May, has said that auto makers will need to sell in the magnitude of 7 million vehicles per year in the future to remain competitive. Fiat and Chrysler deliveries this year will total 4.5 million to 4.6 million vehicles, he said

    The company has told shareholders to expect plenty of good news as the completion of a full merger with Chrysler opens greater global opportunities for the world's seventh-largest car maker.

    The creation of FCA after Fiat took full control of the third-largest U.S. auto group in January in a $4.35 billion deal paves the way for Fiat to easily and cheaply share technology, cash and dealer networks with Chrysler.

    “The birth of FCA will end the precarious life of Fiat,” Chairman John Elkann told shareholders. “Today for the first time we have different prospects: we no longer need to play a game of survival ... you can expect much good news in the future.”

    2014 forecast

    Mr. Marchionne reiterated the group's forecast of a 2014 trading profit of between 3.6 billion euros ($5 billion) and 4 billion on revenue of around 93 billion.

    He said the growth in shipments will be largely driven by higher volumes in North America and Asia-Pacific.

    FCA expects a new strategy focusing on exports of premium brands such as Maserati and Alfa Romeo to help override some of the weak demand in its traditional markets, especially Italy, hit by a six-year slump in car sales in Europe.

    Separately, Fiat Chrysler is continuing talks with Russia on a possible collaboration that could see the company setting up a new plant there to produce Jeeps and light commercial vehicles, Mr. Marchionne said.

    “Russia continues to be a market of strategic relevance,” he told a shareholders' meeting.

    “The talks with the Russian Federation and Sberbank are continuing. We expect that the segment produced there will include Jeeps and light commercial vehicles ... it could include a locally-based plant.”

    Russia's ties to the West have been strained amid the crisis in the Ukraine and Crimean peninsula. The U.S. and its allies accuse Russian president Vladimir Putin of illegally seizing the Black Sea peninsula after a March 16 referendum they say was a sham.

    Newspapers go to Wall Street

    Mr. Elkann said that the group's loss-making publishing activities will be part of the new FCA NV to be listed on the New York Stock Exchange.

    “Neither myself nor Sergio decided to enter the publishing business. Fiat has been a shareholder of RCS Mediagroup (Italy's largest publishing group) for more than 30 years,” he said.

    For almost a century Fiat also has owned the Turin-based La Stampa, Italy's fourth-largest daily newspaper.

    Asked if he sees a potential conflict of interest for an industrial group that also owns stakes in two publishers of newspapers and magazines, Mr. Marchionne replied, “I honestly don't see the point.”

    Bloomberg and Reuters contributed to this report, which appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.

    Related Articles
    Marchionne to stay at Chrysler-Fiat 'at least' 3 more years
    Chrysler now belongs to Fiat…completely
    Chrysler eyes more stand-alone Express Lanes
    Toyota leads in recalls again in 2013
    Feb. slow for U.S. auto sales
    Chrysler recalls Fiat 500L, Grand Cherokee, Durango
    Chrysler issues worldwide recall to repair brake system
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • List Rental
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION