Fiat CEO Sergio Marchionne said Monday that he could increase Fiat's ownership in Chrysler to more than 50% should America's smallest domestic automaker seek to return to the stock market this year, but that he doesn't plan to merge the companies' operations.
Buoyed by consumers' increased confidence in the U.S. economy, most automakers reported higher sales of cars and trucks in the U.S. during October compared to a year ago -- making it the best October in three years for the auto industry.
Chrysler Group reportedly is planning to build a small car capable of 40 mpg based on a current Fiat design in a bid to boost its corporate fuel economy average.
In addition to state tax credits from Michigan -- and the billions of dollars already loaned it by U.S. taxpayers in the form of last year's bailout -- Chrysler may soon get approval for billions more in loans from the Department of Energy.
Vehicle sales have been less than stellar in recent months, disappointing some analysts. But the industry is gradually improving in a broad trend that is benefiting nearly all automakers -- including the Big Three, which have returned from the brink.
Demand for new cars and trucks should be better than it was a year ago. But expectations now are for lower sales than in August, itself unimpressive. That would leave autos stuck in a four-month-long rut.
Italian automaker Fiat reportedly is looking to acquire a bigger stake in Chrysler Group, and may seek to sell shares in its Ferrari sports-car unit in an initial public offering to help fund the purchase, unnamed sources told the respected Italian newspaper Corriere della Sera.
Eager for fresh products to sell to consumers, Chrysler dealers are vying for about 165 Fiat franchises. Fiat took over management of Chrysler last year as the carmaker was heading into bankruptcy.
U.S. auto sales started off strong over the Labor Day holiday weekend, but have since dropped significantly, according to analysis by car-buying guide Edmunds.com.
Chrysler has taken the wraps off the latest iteration of the Jeep Wrangler sports-utility vehicle. But it will take a discerning eye to spot the subtle differences between the soon-to-be available 2011 model and those of its predecessor -- and that's the point.
Much-improved sales helped struggling Chrysler Group report a smaller second-quarter loss, compared to the first quarter, the automaker announced Monday.
