- C. Robert Kidder to be named Chairman of U.S. Automaker
- Sergio Marchionne to Serve as Chief Executive Officer
AUBURN HILLS, MI/TURIN, Italy, June 10 /CNW/ - Chrysler Group LLC and
Fiat Group announced today that they have finalized their previously announced
global strategic alliance, forming a "new" Chrysler that has the resources,
technology and worldwide distribution network required to compete effectively
on a global scale. The new Chrysler will begin operations immediately.
As part of the alliance, Fiat will contribute to Chrysler its world-class
technology, platforms and powertrains for small- and medium-sized cars,
allowing the company to offer an expanded product line including
environmentally friendly vehicles increasingly in demand by consumers.
Chrysler will also benefit from Fiat's management expertise in business
turnaround and access to Fiat's international distribution network with
particular focus on Latin America and Russia.
"This is a very significant day, not only for Chrysler and its dedicated
employees, who have persevered through a great deal of uncertainty during the
past year, but for the global automotive industry as a whole," said Sergio
Marchionne, who today was named Chief Executive Officer of Chrysler Group LLC.
"From the very beginning, we have been adamant that this alliance must be a
constructive and important step towards solving the problems impacting our
industry. We now look forward to establishing a new paradigm for how
automotive companies can operate profitably going forward."
Mr. Marchionne continued: "We intend to build on Chrysler's culture of
innovation and Fiat's complementary technology and expertise to expand
Chrysler's product portfolio both in North America and overseas. Those
Chrysler operations assumed by the new company that were idled during this
process will soon be back up and running, and work is already underway on
developing new environmentally friendly, fuel-efficient, high-quality vehicles
that we intend to become Chrysler's hallmark going forward.
"The same attributes that first attracted us to this alliance - a global
automotive company with first-class technology, a devoted workforce, improved
efficiency, a strong, global distribution network and an unyielding passion
for building great cars that consumers want - are even more true today. While
it does not solve every issue faced by the automotive industry today, this
alliance, established with the full support of President Obama's
Administration, is a very significant step toward positioning Fiat and
Chrysler to be leaders among the next breed of global automakers. This has, I
know, been a difficult process for everyone involved, but we are ready to
prove to the American consumer that Chrysler can once again be a strong,
competitive company that produces a full portfolio of reliable vehicles that
capture the imagination and inspire loyalty," Mr. Marchionne said.
Under the terms approved by the U.S. Bankruptcy Court in New York and
various regulatory and antitrust regulators, the company formerly known as
Chrysler LLC today formally sold substantially all of its assets, without
certain debts and liabilities, to a new company that will operate as Chrysler
Chrysler Group in turn issued to a subsidiary of Fiat a 20 percent equity
interest on a fully diluted basis in the new company. Fiat has also entered
into a series of agreements necessary to transfer certain technology,
platforms and powertrains to the new Chrysler. Fiat's equity interest will
increase in increments by up to a total of 35 percent in the event that
certain milestones mandated by the agreement are achieved, but Fiat cannot
obtain a majority stake in Chrysler until all taxpayer funds are repaid.
Similarly, the United Auto Workers' Retiree Medical Benefits Trust, a
voluntary employees' beneficiary association trust (VEBA) has been issued an
equity interest in Chrysler Group equal to 55 percent on a fully diluted
basis. The U.S. Treasury and the Canadian Government have been issued an
equity interest equal to 8 percent and 2 percent on a fully diluted basis,
respectively. These interests reflect the anticipated share dilution as a
result of Fiat's incremental equity assumption once the milestones outlined in
the strategic alliance agreement are achieved.
In addition to Mr. Marchionne, currently the Chief Executive Officer of
Fiat S.p.A. serving as CEO, the new Chrysler will be managed by a nine-member
Board of Directors, consisting of three directors to be appointed by Fiat,
four directors to be appointed by the U.S. Government, one director to be
appointed by the Canadian Government and one director to be appointed by the
United Auto Workers' Retiree Medical Benefits Trust. The Board is expected to
name C. Robert Kidder as Chairman. The process of determining additional board
members is continuing and updates will be announced as appropriate.
As previously announced, Chrysler has entered into an agreement with GMAC
Financial Services to provide automotive financing products and services to
the Company's North American (NAFTA) dealers and customers. GMAC Financial
Services will be the preferred lender in North America for Chrysler, Jeep(R)
and Dodge dealer and consumer business, including wholesale of new and used
vehicles as well as retail.
About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with
Fiat Group, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and
products. With the resources, technology and worldwide distribution network
required to compete effectively on a global scale, the alliance builds on
Chrysler's culture of innovation - first established by Walter P. Chrysler in
1925 - and Fiat's complementary technology.
Headquartered in Auburn Hills, Mich., Chrysler Group LLC's product lineup
features some of the world's most recognizable vehicles, including the
Chrysler Town & Country, Jeep Wrangler and Dodge Ram. Fiat will contribute
world-class technology, platforms and powertrains for small- and medium-sized
cars, allowing Chrysler Group LLC to offer an expanded product line including
environmentally friendly vehicles.
Follow Chrysler news and video on:
Chrysler Connect blog: http://blog.chryslerllc.com
Twitter: http://www.twitter.com/chryslercom and www.twitter.com/chrysler
Founded in 1899, Fiat is an automotive-focused industrial group, serving
customers in more than 190 countries around the world. With some 185,000
employees, 114 R&D centers and 178 plants worldwide, the Fiat Group designs,
manufactures and sells passenger cars (Fiat, Lancia, Alfa Romeo, Abarth,
Maserati and Ferrari), agricultural and construction equipment (CNH Case New
Holland), trucks and industrial vehicles (Iveco), and automotive components
(FPT Powertrain Technologies, Magneti Marelli and Teksid). More information
available at www.fiatgroup.com or www.fiatgroupautomobilespress.com.
Additional information and news from Chrysler is available at
For further information:
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