Name: 1012FiatFIX2
Uploaded: 2014-10-13
Duration: 1 min 33 s
Description: 1012FiatFIX2

The newly minted merger between Fiat and Chrysler will hit the New York Stock Exchange Monday as Fiat Chrysler Automobiles, which is now the seventh largest auto maker in the world. Monday's listing isn't exactly an IPO. The new company won't release new shares to the market. But instead will be transferring shares from Italy to New York under the symbol FCA. The new stock is expected to start at around $ 8. 77 a share. It's closing price in Milan Friday. The company has about 88. 5 million shares it eventually plans to transfer. This deal marks the culmination of Fiat's gradual acquisition of Chrysler. FIAT CEO, Sergio Marchionne picked up a 35 % stake in the company after Chrysler filed for bankruptcy in 2009. The partnership has worked well for both companies. Breathing new life into Chrysler while helping the European centered FIAT ship overseas. Now Marchionne plans to take the new company to the top of the industry, aiming to boost sales 60 % by 2018. But, the Detroit Free Press notes that the new company is hitting the market at an unfortunate time. Amid bad news from industry leaders, Ford and GM, along with general uncertainty within the industry. And, the Wall Street Journal points out Fiat is still carrying over 12 billion dollars in debt. And a junk credit rating, which might give investors cause for hesitation, however the new company could tap into cash reserves at Chrysler to help address that issue by 2016. The merger and subsequent plan for growth look to be the twilight of Marchionne's ten year as FIAT CEO. He recently told Bloomberg he plans to step down in 2018. Thanks for watching