It looks like the post-bankruptcy era may be wrapping up soon for both General Motors Co. and the Chrysler Group. The US Treasury Dept. expects to sell its remaining 31.1 million GM common shares by the end of this year, depending on market conditions. That would take the cap off salaries for top executives, which GM has said hampered recruiting. Chrysler Group may avoid an initial public offering with Fiat paying off the United Auto Worker’s health-care trust’s share of the US automaker.
Those watching the Chrysler negotiations are saying a valuation of $10 billion is being considered for market value, which would mean that the UAW’s health-care trust would own about $4.15 billion in share value with its 41.5% stake. It’s less than what analysts had expected Fiat would have to pay for Chrysler Group. The trust has been pushing for an IPO on its share of the US automaker, and Fiat and Chrysler CEO Sergio Marchionne would like to avoid the stock offering and take the remaining stake in Chrysler.
Sales have been strong for GM and Chrysler this year, and both Detroit automakers had a significant presence at the LA Auto Show. GM unveiled its new Chevrolet Colorado compact pickup truck. Those participating in the Green & Advanced Technology Ride & Drive enjoyed driving the Chevrolet Spark EV, the Fiat 500e, and the Jeep Grand Cherokee with its new 3.0L EcoDiesel V6 clean diesel engine. (Read more about the LA Auto Show and the Tokyo Motor Show in the next article.)
Honda enjoyed its presence at the LA Auto Show, gaining lots of media attention for its new hydrogen-powered concept car and for winning the Green Car of the Year award. The 2014 Honda Accord took the award for its high fuel economy ratings and performance features. All three variations were honored – the gasoline, hybrid, and plug-in hybrid versions. The Accord beat out four other finalists – the Audi A6 TDI, the BMW 328d, the Mazda3, and Toyota Corolla. Last year, another mid-sized US-based automaker car took the Green Car of the Year award for a model with gasoline, hybrid, and plug-in hybrid variants – the Ford Fusion.
