The overhaul of Alfa Romeo has stalled as Fiat boss Sergio Marchionne turns his focus on completing Fiat’s buyout of Chrysler.
These spy shots show a mule from the planned Alfa SUV at risk of Fiat’s Balocco proving ground in northern Italy. That it prototype is forget about advanced compared to the one spotted by Autocar in Los Angeles 12 months ago has shown that Alfa’s mainstream models are effectively on hold. Autocar understands the only new Alfa currently progressing is that the Mazda MX-5-based roadster. The Alfa SUV is now unlikely to appear before 2015, a delay which also holds up a planned sister SUV from Jeep.
There’s no news either upon the planned Fiat 500X and it is related ‘baby Jeep’ model. Analysts say Marchionne cannot fully execute his plans to produce a premium car-making division from Jeep, Alfa and Maserati without admittance to Chrysler’s cash reserves, but Marchionne has didn‘t hammer out a do business with Chrysler’s co-owners. Fiat currently owns 58. 5 per cent of Chrysler. The balance of 41. 5 per cent is held from the United Auto Workers Retiree Medical Benefits Trust, a holding acquired like a consequence of GM’s bankruptcy and government bailout. The UAW wishes to maximise its investment to supply funds for retiree pensions and healthcare costs. It covers ex-Ford, GM and Chrylser workers and also has 860, 000 people on its books.
However, Fiat and also the UAW fund have didn‘t broker a deal following the Union valued its holding at around £3. 1bn, and that is perhaps understandable checking Trust’s responsibilities. Last week, Marchionne said talks had failed and he wanted to begin to see the initial public offering executed from the year’s end. One advantage for Fiat could be that the move will establish market price to the shares. However, Fiat will need to ensure it ends up like the majority owner from the UAW’s stake as well as merger, which is important towards the health of Fiat, will fail. Analysts say Marchionne might eventually need to borrow around £2. 5bn to finish the buyout and lastly put money into the much-delayed Alfa-Jeep-Maserati division. Alfa Romeo overhaul stalls because of Fiat-Chrysler buyout
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