What Will Fiat Do?

[Digdeep]

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=af_UR.o.kWAc

This is a shock.

[stuvecorp]

Yeah, not to good. Why sell off CNH to get involved with Chrysler? That doesn't seem like a good idea.

[Tigerotor77W]

Yeah, not to good. Why sell off CNH to get involved with Chrysler? That doesn't seem like a good idea.

Very simply, Fiat has a HUGE untapped market: North America. For one of Italy's finest car makers, it'd be a huge step to get into a very lucrative market -- especially with one or more of the domestic brands down.

[stuvecorp]

Very simply, Fiat has a HUGE untapped market: North America. For one of Italy's finest car makers, it'd be a huge step to get into a very lucrative market -- especially with one or more of the domestic brands down.

That may be true but if they do this, karma will bite them.:mad: Unless CNH can find a good parent company.:)

[stuvecorp]

If anyone has a some billions laying around I would buy them. CNH a Stuvecorp subsidiary. Can you imagine the commercials? I'm not just the owner, I'm a user.:)

[Tigerotor77W]

That may be true but if they do this, karma will bite them.:mad: Unless CNH can find a good parent company.:)

I'm actually curious about this. The CNH relationship within Fiat has definite synergies that Fiat is taking advantage of -- Iveco engines, for instance -- but I'm really curious what the profit/loss statements from them look like. I don't know how much profit Case generates.

[stuvecorp]

I'm actually curious about this. The CNH relationship within Fiat has definite synergies that Fiat is taking advantage of -- Iveco engines, for instance -- but I'm really curious what the profit/loss statements from them look like. I don't know how much profit Case generates.

That is a interesting point on the motors and possibly other aspects. I have no complaints about the motors.

[AWJ Services]

Fiat gets almost two thirds of its operating income from the agricultural and truck businesses. A sale of CNH, the world’s second-biggest maker of tractors and combine harvesters, could fetch as much as 8 billion euros ($10.4 billion), Bernstein said. Fiat may also be forced to sell truckmaker Iveco SpA, which could be worth as much as 5 billion euros, the analysts said. CNH and Iveco disposals are “the only remaining source of funds,” Warburton said.

Fiat rose 2.7 percent to 7.48 euros in Milan trading. The stock has surged 63 percent this year, valuing the company at 8.95 billion euros.

This statement leads one to believe that they are bothe profitable.

[Tigerotor77W]

This statement leads one to believe that they are bothe profitable.

Ha. I really did read the article, but clearly not well enough... :rolleyes:

I can surmise that both Case IH and the ag branch of NH are doing well, but I don't know how well the construction arms are doing. Deere Ag, for instance, does a fair share in supporting what has been weakening a C&FD and commercial equipment divisions.

If this sale goes through, it'd be interesting to see who picks up those two product lines... it could be a lucrative buy (depending on price) for certain manufacturers.

[jefftb]

Deere AG was solid last year but they are already forecasting a decline (significant) in revenue/profit for AG products. Most of it on cancelled orders from European operations where they got most of their revenue last year. The Deere information is from their recent earnings guidance statements.

Something tells me that CNH/Fiat is experiencing much the same.

[jcbgm]

I can surmise that both Case IH and the ag branch of NH are doing well, but I don't know how well the construction arms are doing. Deere Ag, for instance, does a fair share in supporting what has been weakening a C&FD and commercial equipment divisions.

If this sale goes through, it'd be interesting to see who picks up those two product lines... it could be a lucrative buy (depending on price) for certain manufacturers.

Nothing to "surmise". CNH 1st quarter results were posted yesterday. CNH is suffering more they their competitiors (Cat, Deere, Terex). Some highlights:

Construction Equipment Sales down 59% (AEM reports the market is down 51%) - Case is sliding more than the market.

Ag sales are solid (only 12% decline over last year) in revenue, but ag margins are down to 5.1% compared to 8% last year (read, they are having to give stuff away).

In summary: CNH LOST $125 MILLION dollars in the first three months of 2009