Earlier today while speaking at Fiat’s annual meeting in Turin, Italy, multiple-hat-wearing Sergio Marchionne fielded questions about the various automakers he is currently in charge of, including Chrysler.
When Marchionne was specifically pressed about the expected 2011 initial public offering for Chrysler and whether or not that was still on track, the CEO replied, “I don’t know,” according to a Bloomberg report, and went on explain why he can’t answer that question quite yet.
For one, Marchionne explained that a few factors will come into play, such as Chrysler’s need to secure additional liquidity, and also whether or not the United Auto Workers union will agree to sell part of its government-issued stake in the automaker.
What needs to happen?
As Marchionne lead on in his comments, there are a few things that need to happen, in addition to things that would make holding an IPO more favorable for the automaker. For starters, in order for Fiat to increase its stake in Chrysler from 25 to 35 percent, Chrysler needs to reach predetermined milestones, one being sales goals outside of North America, and the other being a distribution agreement in Latin America.
Chrysler also needs to repay its U.S. and Canadian loans before Fiat can increase its holding to a majority 51 percent stake, something that Marchionne reiterated today that is still the intended goal in 2011.
References
1.’Marchionne says…’ view
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