Fiat could raise its stake in Chrysler to 46 percent by June

Article by Christian A., on April 14, 2011

Fiat S.p.A. could increase its share in Chrysler from 30 percent to 46 percent by June this year -- a feat that’s “technically possible,” individuals familiar with the matter told Automotive News Europe.

The Italian newspaper Corriere della Sera reported on Thursday that discussions with international investment banks on refinancing Chrysler’s payables with the Canadian and U.S. governments are at an advanced stage, allowing Fiat to possibly increase its share. Fiat’s ability to increase its share will depend on the result of the negotiations with the banks.

The newspaper further reported that such increase in shares is the “real goal” of Sergio Marchionne, who runs both Fiat and Chrysler, by June or earlier.

Fiat declined to make a comment on the report. Currently, Chrysler owes $7.4 billion to the Canadian and U.S. governments from a loan taken in June 2009 when it exited bankruptcy proceedings. Fiat also then took management control of the U.S. automaker. Last Monday, Marchionne said that Chrysler would refinance its loans by June.

He also added that Fiat wanted to have the majority of the shares in Chrysler by the end of this year. Details of achieving such goal have not been revealed.

A regulatory filing of Chrysler last April 6 with the U.S. Security and Exchange Commission, in preparation of an initial public offering, revealed that in order for Fiat to increase its share to 46 percent, the U.S. automaker’s loans to the Canadian and U.S. governments must be reduced to below $4 billion.

Topics: fiat, chrysler

If you liked the article, share on:

Comments

Recommended

A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries