FCA Shares Debut on New York Exchange Amid Industry Uncertainty
Analysts Warn Investors of Company Financials, Industry Peak
Chrysler’s turnaround from its 2009 bankruptcy has certainly made for a compelling narrative, with pop-culture icons such as Eminem and Bob Dylan being enlisted to tell its story. The redesigned Ram trucks have gone on to unprecedented sales success and industry acclaim, and its Jeep SUV division continues to grow globally and retain a commanding market share of U.S. SUV sales. The culmination of all the hard work put in by Chrysler employees and Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne came to fruition today with the public listing of FCA shares (FCAU) on the New York Stock Exchange, along with a concurrent secondary listing on Italy’s Milan Stock Exchange, Reuters reports.
The first-day share price debuted just under $9 per share, making it one of the lowest-priced stocks of the Detroit automakers. Shares of Ford Motor Company are trading in the mid-$13 range, and General Motors’ shares are around $30 per share. A Morningstar analyst warned that investors need to be willing to accept higher-than-average risk in a highly leveraged turnaround situation to invest in the company right now, and further warned of slowing global sales, and a possible slowdown in the U.S.
Chrysler’s historic over-reliance on truck and SUV sales have hurt its recent fuel-economy rankings, but has helped it weather a declining U.S. sales market, with demand for trucks, crossovers, and SUVs remaining strong in the midst of declining demand for passenger cars.