Photo: Jeep
ADW Capital Management isn’t even in the top 100 shareholders of Fiat Chrysler Automobiles, but the company is urging the board of directors to sell the European business. Spinning off Maserati and Alfa Romeo had been proposed as well, and the long-time shareholder also wants to change the automotive group's name to JeepRAM.
In a press release from ADW Capital Management, the company recognizes “the sentimental and historical importance of the Fiat brand” but “the most logical path forward would be to sell or merge it.” Going further into detail, the shareholders explains that “today's collection of assets under the FCA umbrella makes no sense from a strategic or industrial point of view.”
Regarding the separation of Maserati and Alfa Romeo, the higher-ups at ADW Capital Management believe that his part of the business “is significantly undervalued” within the group. In the event Fiat Chrysler Automobiles decides to monetize these two brands through a sale, the company believes that “many OEMs would rush to the negotiation table to get their hands on this busniess given its growth potential.”
The third point that ADW Capital Management would like to highlight is the increase of the dividend payout ratio. In light of how the market is underestimating the earnings durability and growth of Fiat Chrysler Automobiles, the dividend yield isn’t up to snuff according to the shareholder.
An increased payout ratio would imply that shareholders believe in the durability and growth of the Italo-American automaker, but on the other hand, the higher dividend yield should be mirrored by the financial results of the group, including underperforming brands such as Fiat.
Last, but certainly not least, portfolio manager Adam D. Wyden is advocating the merger with General Motors or Ford. “Although the great Sergio was extremely keen on another OEM merger,” said Wyden, “2015 was early in the eyes of the market. We too miss our coach, but our team was hard conditioned for excellence over the last 14 years. It is our turn now to make the Boss proud and play offense.”
Regarding the separation of Maserati and Alfa Romeo, the higher-ups at ADW Capital Management believe that his part of the business “is significantly undervalued” within the group. In the event Fiat Chrysler Automobiles decides to monetize these two brands through a sale, the company believes that “many OEMs would rush to the negotiation table to get their hands on this busniess given its growth potential.”
The third point that ADW Capital Management would like to highlight is the increase of the dividend payout ratio. In light of how the market is underestimating the earnings durability and growth of Fiat Chrysler Automobiles, the dividend yield isn’t up to snuff according to the shareholder.
An increased payout ratio would imply that shareholders believe in the durability and growth of the Italo-American automaker, but on the other hand, the higher dividend yield should be mirrored by the financial results of the group, including underperforming brands such as Fiat.
Last, but certainly not least, portfolio manager Adam D. Wyden is advocating the merger with General Motors or Ford. “Although the great Sergio was extremely keen on another OEM merger,” said Wyden, “2015 was early in the eyes of the market. We too miss our coach, but our team was hard conditioned for excellence over the last 14 years. It is our turn now to make the Boss proud and play offense.”
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