Chrysler CEO reiterates no IPO in 2012

DETROIT, Tue Jul 31, 2012 – Chrysler Group LLC Chief Executive Sergio Marchionne said on Tuesday, as he has previously, that an initial public offering of company stock will not occur this year.
“This is not a 2012 event,” Marchionne said on a conference call on Chrysler’s second quarter earnings. Marchionne is also chief executive of Chrysler’s majority owner Fiat SpA.
“We obviously have ongoing discussion with VEBA” about a possible IPO for Chrysler in 2013, Marchionne said.
Fiat owns 58.5 percent of Chrysler and VEBA, the healthcare trust for Chrysler retirees run by the United Auto Workers union, owns the remaining shares.
Marchionne in early July announced the intention for Fiat to exercise a call option to increase its share in Chrysler by 3.3 percentage points to 61.8 percent.

Marchionne: next Chrysler CEO likely to be named after 2015

TRAVERSE CITY, Mich. ― Sergio Marchionne, the chief executive of both Chrysler and its controlling shareholder Fiat SpA, said he hoped to stay on through 2015 and would groom a successor from within the company’s ranks.

Marchionne, who orchestrated Fiat’s management takeover of the U.S. automaker, has been the architect of Chrysler’s revival after a 2009 bankruptcy funded by the Obama administration.

Some auto industry executives and bankers have privately questioned how long Marchionne could sustain an intense, hands-on management style marked by long workdays and frequent flights between Turin and Detroit.

Speaking at an industry conference on Wednesday, Marchionne said he hoped that a merged Chrysler-Fiat would become one of the industry’s largest global competitors.

“It’s going to be up to the guy after me, after 2015 hopefully,” Marchionne said during a question and answer session at an industry conference. “Maybe a year later, I don’t know. I’m 59 now. There’s going to be a guy after me, that’s for sure.”

Marchionne’s mention of a successor corresponded to a dip in Fiat’s share price. The shares closed 1.73 percent lower at 5.98 euros on Wednesday.

Marchionne later told reporters, in response to a question: “I brought up 2015 as a point of reference. But the last thing we want is speculation about when I’m going to leave. I technically can go beyond 2015.”

The 2015 mark would be a year after Chrysler completes its five-year turnaround plan, which was outlined in November 2009. The plan calls for Fiat and Chrysler to sell a combined 6.6 million cars and trucks by 2014, up from just over 3.6 million in 2010.

A successor to Marchionne will likely come from the newly formed group executive council, a team of 22 Fiat and Chrysler executives that will oversee the integration of the two automakers. The majority of the council is made up executives from Fiat.