Chrysler Fiat Automobiles (FCA) is now taking its first steps on Wall Street.
The deal paves the way for a new phase of alliances globally.
The moment does is not ideal, but it’s a must. Four months after moving its headquarters in the Netherlands, Chrysler Fiat Automobiles (FCA) will make his first steps today on Wall Street. After the withdrawal on Friday of Fiat shares of the Milan Stock Exchange (after one hundred and eleven years of presence), France Euronext and Deutsche Boerse, the president of FCA, John Elkann, thirty-eight years, and the managing director Sergio Marchionne, sixty-two years, will ring the bell of the legendary New York Stock Exchange (NYSE).
Medium-term objective of the seventh largest manufacturer, born of the gradual recovery of Chrysler by Fiat since 2010: broadening the shareholder base of the group (€ 86.8 billion turnover in 2013) to American investors. But, confirming his desire to remain at the head of FCA 2018, Sergio Marchionne has also clearly mentioned the possibility of a future alliance to participate in the emergence of an even more important than the actual manufacturer World number one Toyota. “The industry needs it. It’s still a very fragmented compared to investment capital needs “sector , told Sergio Marchionne to” Bloomberg Businessweek “on the eve of the weekend.
Interest in Japanese
Despite the general context unfavorable to trade on exchange, the automaker not exposed to major risk. The title comes from FCA conversion as Fiat and keep a “secondary listing” in Milan. According to a statement from the group, FCA will have to invest more than 416 million euros (the price of 7.72 euros per share) in the redemption of the shares of the minority who have exercised their right to opt out and had to give up on the resale market due to the recent fall in the group.
Meanwhile, thanks to the Dutch law on double voting rights, the holding company of the Agnelli family Exor will substantially strengthen its control over FCA, climbing to 46.6% voting rights (with 30% of shares). “We are not sellers,” , said John Elkann to “Bloomberg Businessweek”. But the family could leave dilute “if there would be an opportunity to make the company stronger through merger or consolidation with other groups not only European” .
After summer rumors of a global alliance with Volkswagen and PSA Peugeot, speculation rather focus today on a merger with a Japanese manufacturer, Suzuki, Mazda and Mitsubishi type without excluding a mega-alliance with Toyota or Honda. “The fact of not having a presence in Asia remains a major handicap for FCA” , said Giuseppe Berta, a professor at Bocconi University. The group has recently announced a target alliance with Mitsubishi in commercial vehicles.
Objectives optimistic
The question is whether FCA will be able to achieve its target of 7 million cars sold in 2018 (against 4.4 million in 2013), widely considered optimistic by many analysts. In Italy, where its production level has collapsed from 1.4 million to 400,000 units in fourteen years, FCA put on the revival of Alfa Romeo and Maserati, and the launch of the Jeep Renegade to maintain its level of activity (62,500 jobs over 226.000). “The Sprint Maserati, which reached 40,000 sales in one year is a good sign,” , we are assured in Turin. But maintaining employment will depend largely on the recovery plan of Alfa Romeo (400,000 sales in 2018) and the success of the Giulia Nuova into production in the fourth quarter 2015
Pierre de Gasquet Les Echos
Correspondent in Rome
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