Chrysler is in no rush to go public, according to chief executive Sergio Marchionne, who added that the US carmaker “technically” does not need to raise equity.
Marchionne told reporters in New York that the timing of an IPO would be decided in concert with other Chrysler stakeholders.
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He added: “There’s no rush to get it done, but we will do whatever accommodates the interests of the members. As soon as we have the debt refinancing in place we will be fine.”
Marchionne was in New York to meet with bankers and others as Chrysler looks to raise US$6bn in a term loan and bonds to help repay high-interest government loans.
The US and Canadian governments provided Chrysler with $7.5bn in loans in 2009 to prevent it from collapsing. The US Treasury gave Fiat management control of Chrysler and a 20% stake. Earlier this year, after meeting targets set by the US government, Fiat’s stake was raised to 30%.
Chrysler has said it wants to complete the refinancing by the end of June to put itself on a firmer financial footing and strengthen consumer confidence in the brand, while helping to pave the way for an IPO.
Marchionne said: “You need to have the capital markets recognise the value of what we have done and enter the IPO cycle. So hopefully by the end of May we should have different discussions.”
He added that Chrysler still hoped to clinch $3.5bn in loans from the US Department of Energy to help revamp its truck-heavy model line to meet higher fuel economy standards.
Chrysler initially envisioned the DOE loans could be used to free up cash to repay government loans. Marchionne said last week that the loans would allow the company to make “step changes” to help transform its line-up.
