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Fiat searching $10 billion to buy the Chrysler stake
* Italy - Fiat owner sells stake in Swiss firm for $2.6B
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(Photo by Alessia Pierdomenico / Bloomberg - Fiat SpA’s headquarters are in Turin, Italy, but the nexus of the transnational organization’s power may already have shifted to southeast Michigan)Turin,Italy -Bloomberg News/The Detroit News, by Tommaso Ebhardt -June 3, 2013: -- Exor SpA, the Agnelli family holding company which controls Fiat SpA, sold a stake in SGS SA for 2 billion euros ($2.6 billion), freeing up resources ahead of the Italian automaker's planned combination with Chrysler Group LLC... Exor, which will post a capital gain of 1.53 billion euros from the sale of its 15 percent holding in the Swiss product- inspection provider to Groupe Bruxelles Lambert SA, will use the money to pursue "new investment opportunities," the company said in a statement today... Chairman John Elkann said last week that Exor has enough funds to invest in Fiat and Chrysler when they combine. One option being explored is to create a company in the U.S., merge Fiat and Chrysler into it and issue shares in the new entity, a person familiar with the matter said last week... Fiat is in talks for as much as $10 billion in financing from a pool of banks to buy the Chrysler stake it doesn't already own and refinance the two automakers' debt, people familiar with the matter said last week... The banks are discussing loaning Fiat the money to purchase the 41.5 percent of the U.S. carmaker held by the United Auto Workers' retiree health-care trust, said the people... A merger is a key step in efforts by Sergio Marchionne, who runs both carmakers, to create a manufacturer with the scale to compete with industry leaders Toyota Motor Corp., General Motors Co. and Volkswagen AG...
* China - Chinese-owned Volvo to open 1st factory in China. Automaker hopes to grow luxury sales
Zhejiang,Hangzhou,China -Bloomberg News/The Detroit News, by Alexandra Ho -June 5, 2013: -- Three years after buying Volvo Cars, Chinese tycoon Li Shufu may get to compete with Volkswagen AG’s Audi and BMW AG on a more level playing field in his own country... Volvo Cars, a unit of Li’s Zhejiang Geely Holding Group Co., will begin production this month at its first factory in China, allowing it to avoid the nation’s 25 percent import tariff. The three years it took to open the factory shows how Li, 49, miscalculated the edge he would have in his home country as the Chinese government subjected the Swedish brand to the same regulatory approval procedures as all foreign automakers. Still, the plant paves the way for Volvo to double sales to 800,000 by the end of the decade as China heads toward becoming the world’s largest market for premium vehicles...
Labels: carmakers news worldwide
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