Fiat Finds $1 Billion in Savings From Unlocking Chrysler's Cash
- Merged company finally gets access to Chrysler's $13 billion
- Interest savings may boost profit 630 million euros in 2018
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Fiat Chrysler Automobiles NV Chief Executive Officer Sergio Marchionne has found a way to boost profit without selling more cars.
Two years after Fiat merged with Chrysler, Marchionne can finally gain full access to its cash stockpile of some $13 billion after buying back bonds that had restricted the funds from being transferred outside the U.S. unit. Marchionne can now tap that liquidity for an expansion plan and reap the rewards of borrowing less money, saving about 1 billion euros ($1.09 billion) on financing in 2018, according to the average of three analyst estimates obtained by Bloomberg.