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Fiat Chrysler celebrate union with NYSE debut

Monday, October 13, 2014 - 02:05

Fiat Chrysler got a warm welcome in its U.S. debut on the NYSE, as the world's 7th largest auto group shifts its center of gravity away from Italy. Bobbi Rebell reports.

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Newly merged Fiat Chrysler celebrated its debut on the New York Stock Exchange on Monday CEO Sergio Marchionne: SOUNDBITE: SERGIO MARCHIONNE, CEO, FIAT CHRYSLER AUTOMOTIVE (ENGLISH) SAYING: "Chrysler has come home. Somebody took it out of this market in the late 90's when Daimler bought it and its coming home." The listing shifts the world's 7th largest auto group's center of gravity away from Italy - and puts its shares under a global spotlight. Morningstar's Rich Hilgert: SOUNDBITE: RICH HILGERT, SENIOR ANALYST, MORNINGSTAR (ENGLISH) SAYING: "It gives it a higher capital investment profile among global investors and I think that is what its aiming for is a lower overall cost of capital and having greater liquidity than just trading with its primary stock listing on the Milan in italy." Listing on the NYSE represents one of the last stages of the merger between Fiat and Chrysler, a relationship forged during the financial crisis in 2009 and a bankrupt Chrysler. While much as been accomplished, the company still has a lot of risks for investors. But CEO Marchionne has an ambitious agenda for the next 5 years - including the launch of dozens of new models - ranging from quirky Fiat 500's to sporty Maceratis. And Hilgert says despite the risks - Morningstar gives the company five stars. SOUNDBITE: RICH HILGERT, SENIOR ANALYST, MORNINGSTAR (ENGLISH) SAYING: "I think its been irrationally discounted by sell side analysts over in Europe it suffers from a credibility issue 23:25 with management which I think it undeservedly had been given by the sell side I also think that its misunderstood on the potential for cost savings that this company could generate by combining the 2 entities on both sides of the Atlantic. I think it's also given an unfair discount because of the leverage that the company has on its balance sheet" Chrysler's brand strength in the U.S. could be a big help - it's now the main profit center for Fiat Chrysler - selling more cars in North America last month than the world's largest automaker, Toyota.

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Fiat Chrysler celebrate union with NYSE debut

Monday, October 13, 2014 - 02:05