Fiat wants to raise its stake in Chrysler to 58.5 percent by the end of this year

Article by Christian A., on September 21, 2011

After achieving a preset performance target, Fiat S.p.A. anticipates an increase of its share in Chrysler Group to 58.5 percent by the end of 2011. Currently, the company owns 53.5 percent of Chrysler Group. The final test would be to develop a vehicle based on Fiat that can achieve 40 miles per U.S. gallon, equivalent to 5.88 liters per 100 kilometers or 48 miles per UK gallon.

The group, which restated its critical mass target of about 6 million units by 2014, confirmed its 2011 group guidance which includes liquidity of about 18 billion euros and revenues of more than 58 billion euros.

Fiat's and Chrysler's CEO, Sergio Marchionne, said on Monday that the group had sufficient liquidity to help it endure the financial crisis.

Fiat has been hit by concerns that a worldwide economic slowdown would hurt its revenues. Marchionne, who has been credited with the turnaround of Fiat in recent years, wants to lift up the Italian automaker to be a global player through a revamped Chrysler. The group aims to attain about 100 billion euros or $144.2 billion in combined revenues by 2014.

He took management of a bankrupt Chrysler under a 2009 bailout agreement and has built up Fiat's share in the U.S. automaker more quickly and cheaply than expected.

However, Fiat still has to decide what to do with the rest of Chrysler, a 41.5 percent share owned by VEBA, the union trust fund of the United Auto Workers. The Italian automaker already has an option to purchase 40 percent of that share, beginning in June next year.

If you liked the article, share on:

Comments

Recommended

Mazda seems too far ahead in Safety technology for having four of its vehicles chosen as the safest on the road. Very recently, the Insurance Institute for Highway Safety has...
by - June 22, 2017
The automotive world is intensely competitive given the growing number of players, but the British car manufacturer is adamantly holding on to its spot. The 2018 Jaguar XF Sportbrake, priced...
by - June 22, 2017
Audi’s all-electric supercar, the R8 e-tron, had been discontinued last October after being in the market for under two years. The electric vehicle was then exclusive to the European market...
by - June 22, 2017
Dodge has made it clear to everyone, including its potential buyers, that the Challenger SRT Demon is a street-legal drag car - that it is unlike any of your ordinary...
by - June 22, 2017
After a number of failed attempts, Tesla finally gets an Arizona dealership license by winning a court battle that allows them to sell directly to consumers. The automotive dealer license...
by - June 22, 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