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Old 06-18-2015, 09:01 AM   #16
jayhawk
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gm or vw, who gets us now?

no question, fiat [fca] is for sale, get ready for a new image program.

this will be our fifth owner in what, 20 years?

any more questions about why ram got spun into its own brand? the intrigue isn't over yet.
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Old 06-18-2015, 10:12 AM   #17
steve_biegler
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Well Jay, I don't think there was any question why Ram was spun off.......at least to those of us that did not drink the cool aid. I'm afraid this is going to get real bad before it gets better. It really is a shame, on so many levels!
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Old 06-18-2015, 06:09 PM   #18
AR2
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Originally Posted by jayhawk View Post
gm or vw, who gets us now?

no question, fiat [fca] is for sale, get ready for a new image program.

this will be our fifth owner in what, 20 years?

any more questions about why ram got spun into its own brand? the intrigue isn't over yet.
You think FCA is for sale? According to Sergio, that is not the case. Of course, you can't believe these executives in these kind of conversations, but I just can't see Sergio selling out. His ego is too big for that.
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Old 06-18-2015, 06:31 PM   #19
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I'll preface my comments by saying that I am not a financial person (although I do find it interesting), so please excuse my naivety on this subject. Having said that, there is some interesting information in this article, if true. The comments that struck me were:

1) The talk of an upcoming downturn in the industry. You would never guess the industry is slowing and possibly declining with all the monthly sales numbers, but I guess it the market can't stay up forever.

2) Industry valuations have peaked. I guess Sergio wants to get out while FCA is at its highest value.

3) FCA has one of the highest debt piles in the industry. I heard FCA had huge debt, but I thought Sergio would have that under control now. I guess that debt is eating him alive.

4) The term "hostile takeover" is being thrown about and it could be a tool Sergio uses against GM. I hope not because GM doesn't need that kind of headache. Of course, Sergio being who he is, wouldn't hesitate to use it if he can get away with it.

5) It is estimated FCA would have to pay $77 Billion (all stock transaction) to take over GM in the event of a hostile takeover and that the move would put FCA under enormous financial pressure. Does Sergio and the FCA chairman care? Apparently not. Sergio has to solidify his "greatness", while possibly hurting everybody else in the process.

6) "Much of FCA market value is tied up in Ferrari". I understand they want to keep Ferrari away from a deal. If Ferrari is taken off the negotiation table (which it sounds like it is), how much is FCA really worth?
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Old 06-18-2015, 06:38 PM   #20
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Do you guys see GM, VW, or somebody else gobbling up FCA, or do you think Sergio will pull a fast one and somehow take over one of these companies instead? I would hate to see GM go down to Sergio and his Italian buddies. It would not be good to lose two (2) American car companies to the Italians. Nor would it be good to see a large, historic auto company like VW get pulled down by Sergio either.

Make no mistake, FCA being taken over by one of those two would be disastrous for the Chrysler and Dodge brands, but I would really hate to see the opposite happen to GM, VW, or somebody else.
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Old 06-19-2015, 02:46 PM   #21
Alex Hossler
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What do you think this would do for GM and FCA stores that still have both under one roof?
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Old 06-19-2015, 03:28 PM   #22
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Originally Posted by AR2 View Post
You think FCA is for sale? According to Sergio, that is not the case. Of course, you can't believe these executives in these kind of conversations, but I just can't see Sergio selling out. His ego is too big for that.
Whether he is seeking a "merger" or a "sale" is just matter of semantics. The Daimler / Chrysler deal was a "Merger of Equals" right? Call it whatever you want but Daimler came out of the signing a LOT more equal than Chrysler. Bob Eaton and the top 18 execs of Chrysler walked away from the signing with over $100 million in their pockets. It was apparent within 30 days that Daimler was the boss and 70% of all the mid-level and up management was history within 90 days of the "merger". What's the difference between that and a "sale"? Sergio is looking for any kind of deal that allows him to save face and pocket a bunch of "lucre" in the process.
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Old 06-21-2015, 09:17 PM   #23
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Whether he is seeking a "merger" or a "sale" is just matter of semantics. The Daimler / Chrysler deal was a "Merger of Equals" right? Call it whatever you want but Daimler came out of the signing a LOT more equal than Chrysler. Bob Eaton and the top 18 execs of Chrysler walked away from the signing with over $100 million in their pockets. It was apparent within 30 days that Daimler was the boss and 70% of all the mid-level and up management was history within 90 days of the "merger". What's the difference between that and a "sale"? Sergio is looking for any kind of deal that allows him to save face and pocket a bunch of "lucre" in the process.
DealerEx, thank you for explaining the situation by using the Daimler example. You are exactly right on what happened with the Daimler/Chrysler "merger", which was something I was totally against from the minute I heard the announcement.

I can see Sergio doing something like that, but he also has a big ego. I think he needs to get something done to "save face", so he is going to do everything possible to get another "merger" done. The question I have is, who would be in charge in a "merger" with GM? Like everybody else, I believe GM would take over (much like Daimler), but I don't underestimate that Sergio would want to be CEO of the new company - and thus use a hostile takeover to get what he wants. He doesn't care about Chrysler or GM history - only what history will say about him and his impact on the industry. That is what really worries me.

I agree with everybody else that says Sergio is putting FCA up for sale, I just don't trust his actions in getting what he wants.
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Old 06-21-2015, 09:23 PM   #24
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I wonder what this week will bring in regards to Sergio's quest for a partner. What do you think will be the end result? Will Sergio find a partner? Will he try a hostile takeover of GM? Or will nothing materialize and Sergio will have to "start pumping water from the sinking FCA ship"?
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