CEO Sergio Marchionne expects that within two years, Fiat S.p.A. has raised its holding in Chrysler Group to 35%. Last year, as part of the deal with the US government, Fiat took an initial 20% stake. This agreement says that Fiat can add 15% more in three tranches based on hitting certain targets with the US government.
Marchionne said this year, Fiat will begin increasing its stake in Chrysler. At a press conference after the group's shareholder meeting last week, Marchionne said there are three steps of five percent.
He said that further that 15% will be added within 24 months. These steps include improving fuel efficiency of cars and engines in the US, and using Fiat's distribution network for Chrysler exports.
Marchionne emphasized that Chrysler is on the recovery track as predicted under the plan. Fiat informed its shareholders earlier about the integration planned last year with Chrysler was on track. Notably, Fiat took a stake in Chrysler amid the global economic crisis.
This meant that while other carmakers reeled under the stresses of the financial crisis, Fiat moved to expand its international footprint.
In addition, Fiat has entered strategic partnerships with carmakers in China and Russia to get access to emerging markets. Marchionne considers the move on Chrysler as a "second chance" for Fiat, which nearly became insolvent in 2004.