GENEVA (Reuters) - A convertible bond remains among Fiat Chrysler Automobile's (FCA) options to boost capital and help fund a shift upmarket aimed at turning round its fortunes in Europe, its chief executive said on Tuesday.
FIAT (F.IT)s financing has been a key concern among analysts who fear the group, which took full control of U.S. unit Chrysler in January, may struggle to find all the cash it needs to revamp idled plants in Italy and roll out a whole range of Alfa Romeos and Maseratis at the heart of its recovery plan.
"Whatever will happen (on the financing), it will happen after we've finalized the merger, moved the listing to New York ... so it will take until at least the fourth quarter if not until next year," Chief Executive Sergio Marchionne said at the Geneva auto show.
A decision on whether FCA would pursue a convertible bond or another option will likely be announced when the company presents a new industrial plan in May.
Marchionne reiterated a share issue was not feasible in the current market conditions. Listing or selling parts of its luxury brands Ferrari and Maserati would remain an option for the future, but would not be part of the May plan, he said.
Fiat took full control of Chrysler in January in a $4.35 billion deal to create the world's seventh-largest auto group, also hoping to use the U.S. firm's cash pool to revamp its loss-making operations in Europe. The group still expects to break even in Europe by 2016, Marchionne added.
He reiterated he would like to complete the listing of the newly-merged FCA in the United States as of October 1, but acknowledged it may be tough to do so.
The carmaker expects to keep the production of its sporty Alfa Romeo brand in Italy, he said, adding that productivity at the Italian plants had improved greatly and was on a par with other production sites in Eastern Europe.
"It's not a nationalistic thing, but there are some things that belong to a place," Marchionne said, adding that, at least in his time as CEO, Alfas would be assembled in Italy. "Alfa Romeo belongs to Italy as Maserati and Ferrari do."
Marchionne said the first new Alfa to be developed under the new plan would be produced before the end of next year.
(Reporting by Agnieszka Flak; Editing by Mark Potter)
