The merger between Fiat Chrysler Automobiles and Groupe PSA cleared one of its final hurdles earlier this month, but the companies are now facing a last minute objection from Walter P. Chrysler’s great-grandson.
As part of his alternative buyout proposal, Frank B. Rhodes Jr suggests the merged entity not adopt the widely mocked Stellantis name. Instead, he proposes the automaker become known as the “Chrysler-Dodge-Jeep-Ram Corporation.”
On top of that, Rhodes wants the company to be headquartered in the United States. His proposal also calls for giving existing management and employees a retention bonus, based on tenure. Furthermore, the proposal says that in “addition to a cash price to be negotiated, and [a] payoff of all existing debt, existing stockholders would receive rights to acquire shares in the buyer entity if it was taken public in the future.”
Walter P. Chrysler
In a statement, Rhodes said “This alternative proposal is, in my opinion, superior to the planned merger and would result in the return to the United States of the Chrysler-Dodge-Jeep-Ram brands and away from the proposed Chinese, and foreign control as proposed in the merger.”
While the proposal has little chance of gaining traction, Rhodes filed an objection to the Stellantis merger with the Committee on Foreign Investment in the United States. He is also advising U.S. Senators oppose the merger as it would “remove future profits and technologies from America.”
The last-ditch effort will likely amount to nothing as shareholders are set to approve the merger on January 4th. Following that, the deal should be completed by the end of the first quarter of 2021.