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Old 09-13-2017, 04:57 PM   #1
XDCX
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Default Any bets on what happens next with Chrysler and FCA?

For those who have watched the forum whither away as a result of my neglect I attribute most of that to the fact that I reached a point about a year ago where I was just burned out on the whole Chrysler/FCA/Marchionne saga.

Accordingly, I haven't created much new content on the forum as it relates to Chrysler's future, even though there have been tons of interesting headlines.

Will FCA spin off Jeep, RAM or Magneti Marelli to generate cash and pay down debt. Will FCA be acquired by a Chinese company looking to make inroads into North America? Or will we be asking the same question a year from now as FCA continues to look for a partner?

I know the forum's been pretty quiet but I would be interested in hearing what our members are thinking.
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Old 09-13-2017, 09:19 PM   #2
AR2
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XDCX, I understand your feeling (burn out) with the whole FCA/Chrysler/Marchionne saga. I've lost quite a bit of interest because I think we are coming to the end of this whole saga. I don't really know what Sergio will do with FCA (sell off, break apart, or merge), but I do believe the existence of the last remaining parts of the old Chrysler Corporation (Chrysler and Dodge) is coming to an end. Ten years from now, I don't think Chrysler and Dodge will be around, and I think we'll be talking about FCA in the past tense. The industry is getting more and more competitive, and companies (and brands) that lag behind or become lethargic will be squeezed out of the market. In my eyes, there is really nothing there with Chrysler and Dodge anymore. The industry has moved on and let them sit.

I see Jeep and Ram staying around, but they'll be owned by somebody else. I can see Volkswagen wanting Jeep and Nissan wanting Ram, but the rest isn't in high demand in my opinion.

The Italian brands (Fiat, Maserati, Lancia, Alfa Romeo) are all bit players and won't make much of an impact in the U.S. or anywhere else in the world.

Unfortunately, Sergio and the Agnelli family hold the fate of FCA and the remains of Chrysler in their hands.
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Old 09-14-2017, 02:14 PM   #3
steve_biegler
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First off.....Welcome Back! I missed you, hope all is well with you and your Dad.

I completely understand the burnout factor. I begin to feel that way, then a certain date rolls around and revs me back up.

I tend to agree with AR2 on most all of his points. The difference is I think Honda may be interested in both Jeep and Ram. They really don't have much of a SUV line up and sure don't have anything that competes in the pickup arena. I'd like to think the performance cars would hang around but I don't see them creating enough profit to be viable.

Its hard to watch a company that we worked with for so many years become a shell of its former self. I'm referring back to the days of Chrysler, before it was sold out to Daimler (shame on you Bob Eaton), and for me even farther to the AMC days, before Renault. And now I'm showing my age.

Even though I'm not in "The Business" anymore I can't stop watching and hoping, for my surviving dealer friends sake, someone will save the company. The next downturn will tell the tale and I doubt its far away.

Last edited by steve_biegler; 09-14-2017 at 02:19 PM.
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Old 09-14-2017, 04:43 PM   #4
XDCX
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Great comments from both AR2 and Steve Biegler.

I concede that I really haven't kept up with FCA's efforts to find a buyer but the impression I had from when I was last up to speed is that Marchionne has "shopped" FCA across the planet and hasn't found anyone who is willing to buy the whole package.

My impression has always been that there are a number of companies that would like to have Jeep and Ram and a different set of companies that would be interested in owning Maserati and Ferrari. That said, I think that any company that was smart enough to be in a position to buy FCA would also be smart enough to know that time is Marchionne's enemy.

Marchionne first "shopped" FCA when the market and the economy was still hot and the Chrysler/Jeep/Ram product line was fresh and competitive. Over the past three years the market has softened and much of the Chrysler/Jeep/Ram product line is starting to look dated and less competitive.

To Steve Biegler's point, I agree that Honda acquiring the Jeep and Ram brands would make perfect sense. The only downside I see from Honda's perspective is what do you do about the Jeep/Ram Dealers and the UAW?

If I were the guy at Honda who's waiting to pull the trigger I'd probably figure it's smartest to let time work against Marchionne. While there's currently no indication that FCA is anywhere near a point where bankruptcy would be an issue we all know how fast an OEM can hemorrhage cash when the economy comes to a hard stop.

Arguing the flip side, FCA's stock price appears to be near or at an all-time high. Wall Street seems to be convinced that Marchionne is going to be able to find multiple suitors who will create a bidding war.

As always, time will tell....
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Old 09-15-2017, 08:42 AM   #5
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GREAT Comments. I add, though not as in tune with your awareness of the market, I think the TRUMP Campaign of "America First" is of serious concern for any foreign buyer. If I were them, I agree waiting is in my advantage, as my plan would be to pull as much manufacturing overseas, away from the UAW.

In a best case plan,I would find methodology to spin all the parts to a shell company, as they come out of Fiat then file bankruptcy. Buy out of the bankruptcy what I want, Ditz the dealer network and union.
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Old 09-21-2017, 03:11 PM   #6
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like most , I don't have a clue how this will shake out.
fca's for sale, no question, Chinese?, I don't think so, germans?, maybe, status quo?, possible.
just took a 3000+ mi. road trip, saw a lot of new fca buildings, remodeled to corporate image look stores, duals, etc.. very confusing.
they may be ok with pacifica, a few cars, jeep and ram. people in the central u.s. seem to like the product, don't really care about electric, hybrid and etc., who wouldn't want anything hemi powered?
this uncertainty could drag on a long time.
thanks for all the previous input,
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Old 09-21-2017, 09:50 PM   #7
AR2
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Well, here is another spin on what could happen. According to this article from The Truth About Cars, Hyundai is supposedly interested: http://www.thetruthaboutcars.com/201.../#more-1592144 The article sites The Korean Herald mentioning all kinds of industry rumors of a "merger" between Hyundai and FCA. Who knows what will happen, but it sounds like the media and finance world are starting to get impatient and are spreading all kinds of rumors.

Something will happen, it's that we don't know who it will be or when. Of course, if you read some comments around the Internet, the other automotive companies just need to be patient and wait for FCA to collapse.
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Old 09-21-2017, 10:06 PM   #8
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Quote:
Originally Posted by steve_biegler View Post
I tend to agree with AR2 on most all of his points. The difference is I think Honda may be interested in both Jeep and Ram. They really don't have much of a SUV line up and sure don't have anything that competes in the pickup arena. I'd like to think the performance cars would hang around but I don't see them creating enough profit to be viable.
Honda would be an interesting development, but I just don't see Honda making that kind of move. Honda likes to go it alone and grow little by little, not through mergers or purchasing brands/companies. Of course, there might be a time when Honda is forced to give up its "Go it alone" attitude concerning mergers and acquisitions, but for now, Honda is doing pretty well. I think it has around 9.6% market share in the United States, which is impressive considering less than 5% of Hondas sales go to fleets and Honda isn't exactly know for suvs and trucks.

I also saw a chart showing that Honda has passed FCA in global sales to become number 7 in the world. I don't know how accurate the chart was since I didn't see the source of the chart, but it did raise my eyebrows quite a bit. So, Honda seems to be doing ok now. However, you just never know what industry movement will come down and put pressure on a company like Honda.

If Honda were to acquire FCA, I don't see the Chrysler and Dodge nameplates sticking around. They have too much baggage for a company like Honda. I don't think the Italian brands would fair much better either, other than being sold off to somebody that wants them.
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Old 09-22-2017, 10:12 AM   #9
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I can't see any Japanese company buying an American company because it will mean they are opening the door to American Unions and that's not their style. Toyota walked out on cheap rent at the Fremont factory because there was a hook that they would have to accept the union. The Japanese can create whatever they want, as Toyota showed with its successful truck launch in Texas. For them to adopt Chrysler's union would be like asking a gorilla to lunch. That's just my take on it.
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