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"Fiat has informed us that it is evaluating the various potential impacts that a public offering and the consequential introduction of public stockholders may have on its views of the Fiat-Chrysler alliance, and as such, is considering whether or not to continue expanding the Fiat-Chrysler alliance beyond its existing contractual commitments," Chrysler said in its filing. Jack Nerad, a market analyst with Kelley Blue Book, said the trust's efforts to protect retirees might actually jeopardize current Chrysler employees, who might be better served by an alliance with Fiat. Chrysler has been able to cut vehicle development costs and expand its sales outside North America with Fiat's help. The UAW and Detroit's automakers -- Chrysler, Ford Motor Co. and General Motors Co.
-- formed the trust in 2007 in order to take growing health care costs off the companies' books. It currently has $52.4 billion in assets and pays the health care bills of more than 800,000 retirees and dependents. Chrysler exited the U.S. public market 15 years ago, when Daimler acquired it. But the combination was a disaster, and Daimler sold most of Chrysler to private equity firm Cerberus Capital Management in 2007. Cerberus hoped to stanch Chrysler's losses and rebuild the company, but was stopped short by the recession, which caused U.S. car sales to plummet. Despite billions in loans from the U.S. government, Chrysler filed for bankruptcy protection in April 2009. In a deal brokered by the U.S. government, Fiat took over Chrysler's operations when it emerged from bankruptcy less than three months later. Fiat was given a 20 percent stake in Chrysler but has gradually acquired more of the company. Fiat shares Chrysler's profits but can't use the Detroit automaker's cash
-- which now amounts to $11.9 billion -- for its own operations. Fiat wants access to that cash to help it cope with the severe sales downturn in Europe. Marchionne has said Fiat has $13 billion in cash, some of which could be used to buy out the trust fund's stake in Chrysler.
[Associated
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