Auto blog

UAW urging Chrysler to sell shares to investors

The United Auto Workers union is pushing Chrysler to sell 16.6 percent of its stock to investors in an attempt to establish the value of the shares. The UAW is currently locked in a lawsuit with Chrysler parent company Fiat over how much the Italian automaker should pay to buy shares from the trust fund. Last year, Fiat told the trust it intended to exercise its right to purchase 3.3 percent of the union's shares at issue. But the union contended the 54,154 shares were worth closer to $381 million instead of the $155 million Fiat offered.
Currently, the UAW owns 41.5 percent of Chrysler while Fiat holds 58.5 percent of the company. Currently, it's unclear whether the UAW could force Chrysler to put the shares on the open market. Doing so would be the first step toward a much-anticipated initial public offering. Chrysler has said it will comply with its shareholders agreement, and Fiat has echoed that tune. According to The Detroit Free Press, the UAW Retiree Medical Benefits Trust has declined to comment on the situation.

Fiat loses $14k on every 500e it builds, Marchionne doesn't want you to buy one

Fiat Chrysler Automobiles CEO Sergio Marchionne made some interesting comments during a frank and entertaining talk at the Brookings Institution earlier today, saying he hoped that no one bought the Fiat 500e, the well-received EV based on the adorable Italian car.
"I hope you don't buy it," said Marchionne, during a talk and question-and-answer session that focused on the aftermath of the automotive bailouts, "because every time I sell one, it costs me $14,000."
"I'm honest enough to tell you that I'll make the car, I'll make it available, which is my requirement. I'll sell the limit of what I'm required to sell and not one more," Marchionne said. "If we build just those vehicles, we'll be back in Steve [Rattner's] successor's office in Washington asking for a second bailout, because we'll be bankrupt by Christmas"

This Or That: Fiat 500 Abarth vs. Ford Fiesta ST [w/poll]

They're pretty darn similar. And yet our views are oh so different.
If you guys could read the transcripts of our editors' chat room, you'd know that we're a pretty argumentative bunch. It's always good-spirited stuff (well, usually), but when we're not obsessively covering this or that, we're usually fighting about one car being better than another. We're all enthusiasts here, and our automotive tastes run the gamut from the weird and unusual to the decidedly mainstream - we all feel strongly about specific cars in a given segment. While it usually makes for good conversation, if we're passionate enough, it can turn into a tomato-throwing showdown.