The publisher of Automotive-Art is preparing an offer to purchase the assets of the company formerly known as Chrysler from Fiat Chrysler Automobiles NV.
“Timing could be just right,” admitted a mergers consultant who requested anonymity because he was not authorized to speak for either party. “There have been some unusual decisions made lately that might temporarily depress Chrysler’s valuation, and make it a great value!”
The wisdom in removing the iconic motoring name Chrysler in favor of FCA US LLC. has raised a lot of eyebrows. In a single moment, the Netherlands-based corporate parent managed to cut off any brand value from the company’s name.
More recently, Chrysler had stopped taking orders on the hottest cars in their line-up. The Challenger and Charger 707-horsepower Hellcats have been a big home-run. But rather than ramp-up production to meet demand, Chrysler decided to suspend further orders!
Numerous economists have pointed out that supply is supposed to meet demand.
And then there is the fact that the Chrysler 300 (the flagship) has been stuck in the current generation since forever and is not projected to change until 2018. (Can you tell the difference in first two generations?) Even the Viper design may be trapped in a time-lock.
The opportunity for Gennera Knab, parent of LCL, is clear: Fiat Chrysler announced U.S. sales for Fiat Chrysler models were up in December 20% from a year ago. It marks the 57th consecutive month of year-over-year sales increases.
Investment banking resources are being lined up in anticipation of the bid by LCL’s parent.
This announcement was made after the close of the NYSE stock exchange on Friday, March 20, 2015
Image Credit: Fiat Chrysler CEO Sergio Marchionne Credit: Photographer: Jeff Kowalsky/Bloomberg