Fiat Chrysler to Tap Debt Markets to Help Fund $60bn Investment Plan
FCA CEO Sergio Marchionne (C) rings the closing bell to celebrate the company's listing at the NYSE on 13 October.Reuters

New York and Milan-traded Fiat Chrysler Automobiles (FCA) proposes to issue debt to help fund an expensive $60bn five-year investment plan and could sell more shares to ensure it has the cash to survive unforeseen market slowdowns.

Chief executive Sergio Marchionne said on 13 October that FCA was "going to tap the debt markets, for sure".

But he did not reveal how much cash the company will look to raise or when a sale might occur, the Wall Street Journal reported.

Fiat Chrysler's board will decide on its capital-raising plans at the end of the month, Marchionne said in New York, post FCA's Wall Street debut.

Fiat still owns 88.5 million shares that it could sell to the public. Those shares were worth $789m (£491m, €621m) at 13 October's closing price.

The world's seventh-largest auto maker's 13 October NYSE listing drew a muted response from investors, with about 5.8 million shares changing hands.

FCA's stock finished at $8.92 after opening at $9.00 on the NYSE.

Richard Hilgert, an analyst at Morningstar, said in a note: "Only those willing to accept the risks of a highly leveraged turnaround situation in a competitive, capital-intensive, highly cyclical industry should consider investing."

Earlier in Milan the FCA's stock ended 1.2% higher.

Fiat on 9 October said that it was left with around 53.9 million shares from investors who decided to cash out and not be part of its merger into FCA. The carmaker also owns another 34.6 million shares in treasury stock.

FCA is headquartered in London for tax purposes and has a legal base in the Netherlands.