Despite the blunt refusal of the CEO General Motors, Mary Barra, for fca “the door to covenants has never been closed. When it happens, most likely I won't be there, because it will be in the near future and I will leave after 2018. What interests me, that is Gm, cannot happen now: when it does it will be someone else's problem. Alliances take time. Unless it happens in the next few months…”. This was stated by the CEO of Fiat Chrysler, Sergio Marchionne, speaking on the sidelines of the shareholders' meeting in Amsterdam. In addition to GM, the possible groups to work with for the merger are Volkswagen, Ford, Toyota and the Koreans of Hyunday-Kia: “But the latter – says Marchionne – are not interested. They don't get married."
The CEO also hinted that FCA could return to paying coupons before 2018: “The history of the dividend is linked to debt. Once the debt has been eliminated, it will be easier for the board to evaluate the payment of a dividend". On the other hand, "in 2014, when the industrial plan was presented, it was stated very clearly that there would be no dividend until 2018 to channel resources to strengthen the balance sheet and meet the company's ambitious plan", President John Elkann recalled.
In the meantime, however, significant progress has been made on the debt side. “Since the presentation of the five-year plan in May 2014 – continued Marchionne – we have taken a series of strategic initiatives, including the creation and double listing of FCA, the IPO and subsequent spin-off of Ferrari and other capital market operations that they will allow us to move towards a uniform financing platform within the second half of this year thanks to these operations we have achieved an overall cut in the net industrial debt of just under 4 billion euros. Looking at the last couple of years I'm confident in saying that we've been able to create an organization that has a more durable and sustainable capital structure. I believe these initiatives will further support FCA's long-term strategic development and further enhance shareholder value."
Marchionne has therefore confirmed the group's 2016 targets: turnover over 110 billion euros, unchanged from 2015 (but excluding Ferrari), adjusted Ebit over 5 billion (4,8 billion in 2015), adjusted net profit over 1,9 billion (1,7 billion in 2015) and net industrial debt below $5 billion.
"2015 was FCA's first full year as a unified global group: an exceptional year, we closed 2015 managing to achieve and exceed all financial targets", commented Elkann again, underlining that some important elements of 2015: the Jeep which recorded "an epochal year completing the goal of becoming a global brand", the opening of the modern Pernambuco plant in Brazil and "milestone strategic choices" culminating in the spin-off of Ferrari which allowed Ferrari to become independent and to FCA to have resources for its strategic activities despite the difficulties of the markets in Brazil and China. “”We must continue to point to the future towards new successes by guaranteeing sustainable growth”, Elkann said again.
Today FCA shareholders also approved in the meeting with almost 99,99% of votes in favour the project to separate from RCS, of which Fiat Chrysler holds 16,7%. “This mechanism – Elkann said at the meeting – offers shareholders the possibility of having RCS shares. We will do as for Ferrari. You will decide what to do, whether to keep or sell the securities”. Marchionne said that “this operation completes the disposal of FCA's non-strategic assets. Last year it was difficult to put together this plan to bring FCA back to being a pure car manufacturer ”.
