Fiat Chrysler Automobiles NV started trading on the New York Stock Exchange on Monday after the two companies completed their merger in an attempt to expand their reach and consolidate positions on the market. The stock of the new company is to be traded under the symbol FCAU and will be moved from the Milan exchange.
The combined company, which is to be legally registered in the Netherlands, while its headquarters will be located in London, is trying to become more competitive in order to answer the growing demand for cars and trucks in the market. The company intends to increase its vehicle sales by almost 60%.
The Chief Executive Officer, Mr. Sergio Marchionne, said in an interview on October 10th, cited by Bloomberg: “As a car company, as a global producer of vehicles, I think we’re fully equivalent to the other Detroit two. And the objective in coming to New York as a stock listing is really to get us evaluated and benchmarked against them.”
Fiat and Chrysler officially finalized their merger during the weekend, while the new entity is ready to meet the ambitious five-year targets set by Mr. Marchionne in May 2014. The newly-formed company is trying to boost its global shipments by more than 50% to 7 million vehicles by 2018.
Fiat Chrysler Automobiles said that it intends to release 30 new product models as part of its €48 billion plan. The newly-formed company also aims to expand on the territory of India and China.
As reported by the Financial Times, Stuart Pearson, an analyst at Exane BNP Paribas, commented on these targets: “The targets themselves are obviously extremely challenging in what’s a worsening growth market in terms of global auto demand.”
Fiat Chrysler Automobiles NV added 3.53% to trade at €7.19 per share by 14:18 GMT, marking a one year increase of 12.44%. The company is valued at €8.68 billion. According to the Financial Times, the 25 analysts offering 12-month price targets for Fiat Chrysler Automobiles NV have a median target of €7.10, with a high estimate of €10.50 and a low estimate of €4.00. The median estimate represents a 2.31% increase from the last price of €6.94.
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