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NEW ALFA ROMEO ENGINE TO BE PRODUCED IN ITALY 05/10/11
A new gasoline direct injection turbo engine for Alfa Romeo is to be developed in Italy for production at the FMA plant in Pratola Serra beginning in early 2013.
Designed for both transverse and longitudinal applications, the new 4-cylinder engine will have a displacement of 1.8 litres and maximum output of 300 hp, setting a new performance standard in its
category. It will also be compliant with future emissions standards in both Europe (Euro 6) and the U.S. (Tier 2 Bin 5).
Made entirely of aluminium, the engine will incorporate the most advanced technological content, including a 200-bar gasoline direct injection system, dual variable timing and a high-efficiency
turbocharger.
The all-aluminium design, combined with the most innovative technologies, will offer a power-to-weight ratio figure, fuel efficiency, acoustic and vibrational comfort, and driving performance that are
the very best in its category and characteristic of Alfa Romeo engines.
"This is an extremely important step for Alfa Romeo, as we continue to reposition our brand and prepare it for global distribution. The United States remains our primary objective as we prepare for a
2013 introduction of our models," added Harald J. Wester, Fiat's Chief Technology Officer and head of the Alfa Romeo and Maserati Brands. "The dedication of Group-wide resources to develop specific powertrain
solutions for the specific needs of Alfa Romeo is a reflection of the renewed thrust we are placing on the development of this brand. This is a first step in a series of initiatives to be implemented in the near
future which will reconnect Alfa Romeo to its historical roots as a premium Italian sports car brand."
FIAT COMPLETES ACQUISITION OF CHRYSLER EQUITY FROM CANADA AND THE U.S. DEPARTMENT OF THE TREASURY
22/07/11
Fiat has acquired today the 1.5% fully diluted ownership interest1 held in Chrysler Group LLC by Canada. The consideration for such interest was US$125 million.
Fiat and the United States Department of the Treasury ("UST") also today completed Fiat's purchase of the 6% fully diluted ownership interest2 held in Chrysler by UST for a price of US$ 500 million, as contemplated by the agreements entered into in early June.
Under those agreements, UST also assigned to Fiat the UST's rights under the Equity Recapture Agreement entered into between UST and VEBA on June 10, 2009,3 in exchange for cash in an amount of US$ 75 million, US$ 15 million of which was paid to Canada in accordance with arrangements between the UST and Canada.
After these purchases, Fiat holds a 53.5% fully diluted equity interest in Chrysler (after giving effect to the dilution of the Class A Interests held by all members (including Fiat) arising from the
occurrence of the final "Class B Event" contemplated by the LLC Operating Agreement of Chrysler).
Following the occurrence of the final Class B Event, which is expected later this year, Fiat will hold 58.5% of the outstanding equity in Chrysler.4
Turin July 21, 2011
1This percentage gives effect to the dilution of the Class A Interests held by all members (including Fiat) arising from the occurrence of the final "Class B Event" contemplated by the LLC
Operating Agreement of Chrysler (the "Ecological Event"). The interest without giving effect to the final Class B Event is 1.624%, which will be diluted to 1.508% upon the occurrence of the Ecological Event.
2The interest without giving effect to the Ecological Event is 6.495%, which will be diluted to 6.031% upon the occurrence of the Ecological Event.
3Under the Equity Recapture Agreement, the holder is entitled to the economic benefits associated with the Chrysler ownership interests held by VEBA above a specified threshold (equal to
$4.25 billion plus 9 percent per annum compounded annually from January 1, 2010) and any proceeds to VEBA from its Chrysler membership interests that exceed the specified threshold are to be paid over to the holder
along with any membership interests retained at the time in excess of that threshold and the holder may terminate the Equity Recapture Agreement by purchasing the membership interests retained by VEBA at a price
equal to the then-current specified threshold less any proceeds previously received by VEBA from its membership interests in Chrysler. The rights under the Equity Recapture Agreement do not affect Fiat's rights
under the VEBA Call Option. To view the Exhibit to Chrysler's filings with the Securities Exchange Commission [click here]
4Fiat also has the right to purchase an additional 5% interest in Chrysler (subject to dilution of any Class A Interests, including those then held by Fiat) in substitution of the increase
associated with the Ecological Event (the "Alternative Call Option"). Fiat has an option to purchase 40% of the VEBA's original ownership interest in Chrysler (the "Covered Interest"), which option may be exercised
from July 1, 2012 until June 30, 2016, in amounts not to exceed in any six-month period, 20% of the Covered Interest (the "VEBA Call Option"). The exercise price for both of these options is determined before an IPO
occurs using a market multiple (average of multiples of certain automotive companies, not to exceed Fiat's multiple) applied to Chrysler's reported EBITDA for the most recent four quarters less net industrial debt,
and if an IPO has occurred, based on market price of common stock.
FIAT INCREASES ITS INTEREST IN CHRYSLER
26/05/11
- Following closing of the refinancing of Chrysler's debt and repayment by Chrysler of its debt to the U.S. and Canadian governments, Fiat increases its interest in Chrysler
Concurrently with the closing of the refinancing of Chrysler's debt and the full repayment by Chrysler of its debt to the U.S. and Canadian governments yesterday, Fiat has consummated the exercise of
its option to purchase an incremental 16% interest in Chrysler, pursuant to the terms of the arrangements announced on April 21, 2011.
In exchange for a cash consideration of US$ 1,268 million, Chrysler has issued to Fiat 261,225 new class A membership interests in Chrysler, increasing Fiat's aggregate ownership interest by 16% (on a
fully-diluted basis). 1
Following the occurrence of the final Performance Event which is expected later this year Fiat will hold 51% of the outstanding equity in Chrysler.2
1 This percentage gives effect to the dilution of the Class A Interests held by all members (including Fiat) arising from the occurrence of the final Performance Event (or "Class B Event")
contemplated by the LLC Operating Agreement of Chrysler (the "Ecological Event"). The additional interest without giving effect to the final Class B Event is 17.23%, which will be diluted to 16% upon the occurrence
of the Ecological Event
2 Fiat's interest in Chrysler may further increase by an additional 5% (subject to dilution of any Class A Interests then held by Fiat) upon achievement by Chrysler of the Ecological Event. Fiat may
also purchase an additional 5% interest in Chrysler (subject to dilution of any Class A Interests then held by Fiat) in substitution of the increase associated with the Ecological Event (the "Alternative Call
Option"). Fiat has an option to purchase 40% of the VEBA's interest in Chrysler issued to the VEBA as of June 10, 2009 (the "Covered Interest"), which option may be exercised from July 1, 2012 until June 30, 2016,
semi annually, in tranches not exceeding, for each exercise, 20% of the Covered Interest (the "VEBA Call Option"). Exercise price for both of these options is determined before an IPO occurs using a market multiple
(average of multiples of certain automotive companies, not to exceed Fiat's multiple) applied to Chrysler reported EBITDA for the most recent four quarters less net industrial debt and if an IPO has occurred based
on market price of common stock. In addition Fiat has a right to purchase the entire interest held in Chrysler by UST (the "UST Call Option"), which may be exercised in the twelve months following the repayment of
Chrysler's debt to U.S. and Canadian governments. Before an IPO occurs the exercise is price based on a determination of the equity value of Chrysler to be agreed upon between Fiat and UST or, absent agreement,
established by the average of the closest estimated values determined by two of three investment banks appointed by the parties. If an IPO has occurred exercise price is based on market price of common stock. The
relevant agreements are available at the Internet site of the United States Department of Treasury
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