TURIN, Italy (Bloomberg) -- Chrysler Group LLC's share sale may be pushed into next year, CEO Sergio Marchionne said today.
"I don't know", Marchionne said today at Fiat SpA's annual meeting in Turin, Italy, when asked if an initial public offering would take place this year or next.
"It is rational, maybe reasonable, to expect that there will be an IPO. It can't be done very quickly," he said. "We just filed with the SEC, we're still working our way through the comments. We have to get ready to be a public company again, and issuing securities takes time. We should do it properly."
The CEO said in January he expected a Chrysler IPO in the second half of the year.
An IPO depends on the need for additional liquidity at Chrysler and the desire of the United Auto Workers union to sell part of its stake, said Marchionne, who runs Chrysler and Fiat.
Fiat, which owns a 25 percent stake in Chrysler can gain a further 10 percent stake in Chrysler in two steps if the U.S. carmaker reaches milestones including some sales goals outside of North America and a distribution agreement in Latin America.
The UAW's ownership stake -- through a retiree health fund -- fell to 64 percent in January after Fiat raised its stake.
Chrysler is close to finalizing a dealership agreement outside North America with sales in "Brazil ready to start," Marchionne said.
Fiat is targeting fast-growing economies to counter losses in Europe. Marchionne today reiterated plans to reach a 51 percent Chrysler holding by the end of this year, after completing a refinancing deal for Chrysler.
Fiat has an option to raise its holding to 51 percent after Chrysler repays U.S. and Canadian government loans. Marchionne, 58, this year separated Fiat's trucks and tractor units into a separate company to focus on carmaking and foster more auto alliances.
Fiat's assets, after the spinoff of Iveco SpA's trucks and CNH Global NV's tractors into Fiat Industrial SpA, include the Maserati and Ferrari luxury brands.