Product recalls also harm our reputation and may cause consumers to question the safety or reliability of our products. For example, we estimate that we will incur costs of $151 million in connection with a voluntary safety recall for the 1993-1998 Jeep Grand Cherokee and the 2002-2007 Jeep Liberty and a customer satisfaction action for the 1999-2004 Jeep Grand Cherokee, both of which we initiated following a recall request from NHTSA related to the risk of fuel tank fire from rear impact collisions.
Chrysler shares haven't been publicly traded since 1998, when the company merged with Daimler. The automaker, based in Auburn Hills, Mich., is majority owned by Italian automaker Fiat.The shares that would be sold are owned by a United Auto Workers-run trust that pays the health-care costs for about 130,000 blue-collar Chrysler retirees. The trust owns a 41.5 percent stake in Chrysler and would get all of the proceeds from an IPO.
Sergio Marchionne, chief executive of both Fiat and Chrysler, has said he wants to buy up the UAW's shares and combine Fiat and Chrysler. But Fiat and the trust have been unable to agree on a price. The trust has set the value of the stake at $4.27 billion, while Fiat says it's worth $1.75 billion.At the trust's request, Chrysler filed the IPO paperwork with the Securities and Exchange Commission late Monday. But Chrysler emphasized that the shares may never be publicly sold. The two sides could still reach an agreement on the price of the shares without an IPO.
The trust did not immediately respond to an e-mail seeking comment. But it probably calculated that its shares are growing in value as Chrysler's sales and profits improve with the economy. Chrysler reported its eighth-straight quarterly profit in the April-June period, with net income up 16 percent to $507 million.In its filing, the company also warned that the IPO could hurt Fiat's alliance with Chrysler. Fiat owns 58.5 percent of Chrysler.
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