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Daily Digit: $6 bln gap in Chrysler tussle

Monday, July 08, 2013 - 00:54

July 8 - What is Chrysler worth $4.2 billion or $10.3 billion? Its two main owners Fiat and the United Auto Workers trust fund are billions of dollars apart in reaching an agreement. Conway G. Gittens reports.

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Today's Daily Digit is $6.1 billion. That's the wide gap between what Chrysler is worth to Italy's Fiat versus what it is valued by the United Auto Workers. The No. 3 U.S. auto company was rescued during the financial crisis by Fiat and the voluntary employee's beneficiary association, or VEBA, formed by the United Auto Workers. Fast forward to 2013 - Fiat wants to buy out VEBA -valuing Chrysler at $4.2 billion. But the union says Chrysler is worth much more - $10.3 billion to be exact. According to Fiat Chief Sergio Marchionne - the two sides are still far apart in their talks. Owning Chrysler outright could come in handy for Fiat. Industry-wide sales in Europe are in a five-year slump. Meanwhile industry-wide sales for Chrysler's home market in the U.S. - hitting a five-year high.

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Daily Digit: $6 bln gap in Chrysler tussle

Monday, July 08, 2013 - 00:54