American Fiat Sales Up In 2012 $FIATY
Fiat, an international brand who owns companies like Ferrari and Jeep, and a majority of the Chrysler Group LLC has increased their U.S. sales. They announced a 4% increase in U.S. sales from 2012 with 139,015 units sold. Sergio Marchionne who is CEO of both companies, says there is a huge chance that Fiat and Chrysler may merge in the near future, but without it going public.
Skeptics are wary if Fiat has enough cash to finish the transaction; Italy is currently in a recession and Italy is a particular victim. Moreover, auto sales have fallen to their lowest numbers since 1979 in Italy. Fiat currently owns 58.5% of Chrysler. After a merging of the two companies, there is a possibility of Chrysler making an IPO, but these decisions are all up in the air. Marchionne argues that taking the company public would require changing the company structure, something he does not want to do. He rather bring the two companies together as one, rather than them working independently. The small Fiat model 500 has been gaining popularity in the U.S. as well, being endorsed by celebrities like Charlie Sheen and Jennifer Lopez. A merger would give both Chrysler and Fiat more control in the United States and could help both companies develop, as one international brand.