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Chrysler Considering IPO

The two brothers-into-bankruptcy of 2009, GM and Chrysler, are currently on a rebound and their new found fate in their own future is causing them to look out for the promises brought about by a public listing.

Whereas GM's intention to go public is no longer a secret, with the carmaker having already filed its registration papers with the Securities and Exchange Commission (SEC) back in August, the rumors surrounding Chrysler pursuing a similar course of action are intensifying.

According to Freep, Chrysler is currently weighing its options and looks for for the banks to support such a move. Inside sources say that the carmaker intends to go public next year. This is because apparently Fiat is trying to get its hands on the entire group faster.

As stated in the papers which cemented the alliance between the two manufacturers, Fiat will not be able to own Chrysler until the automaker has repaid its entire debt. Chrysler currently owns $7.4 billion to the US and Canadian governments.

Looking for banks is just the first step towards refinancing those debts, said the group's CEO, Sergio Marchionne last week. The carmaker now pays an interest of in between 14 and 20 percent on the loans granted by the US and Canada.

"What he wants to do clearly is refinance it and take advantage of the extraordinarily low level of interest rates," Joseph Phillippi, principal of AutoTrends a N.J. consulting firm told Freep about Marchionne's course of action. "Getting the company's financial footing in a much stronger position is clearly going to benefit him."
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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