Marchionne: Chrysler IPO won’t happen until 2012

Last week Chrysler announced that it will cut its ties with the United States government within the next three months after Fiat purchased the U.S. Treasury’s 6 percent stake in Chrysler for $500 million. The move will give Fiat a majority stake in Chrysler Group LLC for a total of 52 percent.

Chrysler and Fiat CEO Sergio Marchionne is also in talks with the Canadian government to purchase its 1.7 percent stake in the Auburn Hills automaker.

As far as going public, Marchionne said he’s not planning an IPO until at least next year. He said that Chrysler still needs to prove itself more.

“My gut suggests no earlier than 2012,” he said.

Marchionne previously said that an IPO could happen by the end of 2011.

– By: Omar Rana

Source: MSNBC