Fiat Stopping Alfa Romeo Development Until Chrysler Merger is Finished

FiatFiatItaly, 1899 > present159 models
4864 photos
35 videos
has reportedly stopped all active development of new Alfa RomeosAlfa RomeoItaly, 1910 > present108 models
2257 photos
7 videos
other than the MazdaMazdaJapan, 1920 > present80 models
2325 photos
7 videos
co-developed, next generation Spider to focus on its merger with ChryslerChryslerUnited States of America, 1925 > present70 models
873 photos
1 video
.

The problem is that Fiat planned to use Chrysler platforms for some future Alfa Romeos, especially a shared JeepJeepUnited States of America, 1941 > present33 models
965 photos
4 videos
and Alfa Romeo in 2015. If Chrysler’s listing on the New York Stock Exchange is successful, then the stock price will likely rise beyond what Fiat is willing to pay.

Fiat and the United Auto Workers medical pension, which holds the remaining portion of Chrysler stock, have been negotiating for over a year on a price for the stock. They even took the debate to court; all that was decided was that Fiat’s price was too low, and the pension’s price was too high.

Marchionne has admitted that talks between Fiat and the trust had broken down at the moment. The initial paperwork for the IPO has already been filed, and if everything is successful, it could be publicly traded by the first quarter of 2014.

Being publicly traded will finally establish a price for Chrysler stock, the question is if Fiat will be able to afford it.

Source: Autocar