Fiat planning to increase stake in Chrysler to 51 percent before IPO

Article by Christian A., on January 3, 2011

It’s not a secret anymore that Fiat wants to increase its stake in Chrysler Group LLC, right? For those who don’t know, the Italian manufacturer currently owns 20 percent of Chrysler Group, but it appears that its plans are very big for this year.

As a result Fiat wants to increase its stake to more than 50 percent before a planned initial public offering by the U.S. carmaker this year. Fiat obtained the 20 percent stake as part of Chrysler’s bankruptcy reorganization in 2009.

Fiat can increase its stake by 15 percent when Chrysler will meet its sales objectives outside of North America, sells a domestically made car in the U.S. that gets 40 mpg and will make a small engine in the United States.

“I think it is possible, don’t know whether it is likely, but it is possible that we go over the 50 percent if Chrysler decides to go to the market in 2011,” said Sergio Marchionne, CEO of both automakers.

Marchionne also said last month that the manufacturer is considering repaying U.S. and Canadian government loans before 2013, in order to allow Fiat increase its stake in Chrysler by 16 percent. [via autonews - sub. required]

Topics: fiat, chrysler, ipo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 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