AUBURN HILLS, Mich. (WXYZ) - Chrysler Group LLC has filed the paperwork for an initial public offering of stock with the Securities and Exchange Commission.
The automaker filed what's called a "Form S-1" or "registration statement" with the government Monday afternoon. It is the first step in the formal IPO process.
According to Chrysler, "The number of shares to be offered and the price range for the offering have not yet been determined."
In a conversation last week, auto analyst Jim Hall told 7 Action News the value of the company is somewhere between $4 billion and $10 billion, depending on negotiations between Chrysler and the UAW's VEBA.
Along with General Motors, Chrysler accepted billions of dollars in taxpayer-funded federal bankruptcy assistance.
An IPO would be a key step in Chrysler's emergence as a financially independent company capable of making good on its obligations to the UAW's VEBA.
A statement released by the automaker explained, "The common shares to be sold in this offering are proposed to be sold by the UAW Retiree Medical Benefits Trust (the “VEBA Trust”), which has exercised demand registration rights under a shareholders’ agreement with Chrysler Group LLC. The VEBA Trust will receive all of the net proceeds from this offering."
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