Fiat has increased its stake in Chrysler Group by 5% to 58.5 percent
By Jonathan, 05 Jan, 2012. 0 Comments
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Italy-based Fiat SpA raised its share in Chrysler Group by 5 percent, triggered by its commitment to manufacture the 2013 Dodge Dart sedan at a Chrysler facility in Illinois, the companies disclosed. Fiat now controls 58.5 percent of Chrysler. On Wednesday, the two companies had formally committed to the U.S. Treasury Department to produce the highly fuel-efficient vehicle. Along with proving late last month to the U.S. Environmental Protection Agency that the vehicle can provide an unadjusted combined fuel economy of 40 miles per gallon, the commitment triggered the 5 percent ownership increase.
In June, Fiat acquired management control and a 20 percent share in Chrysler, saving the U.S.-based company as it emerged from a U.S. government-sponsored bankruptcy. Sergio Marchionne, chief executive of both Fiat and Chrysler, commented that the acquisition of additional 5 percent of Chrysler is a "fundamental step" in completing the merger of the two companies.
The remaining 41.5 percent of Chrysler is still with healthcare trust VEBA, which is affiliated with the United Auto Workers union. The UAW represents around 26,000 Chrysler workers in the U.S. The shares of ownership are on a fully diluted basis.
In 2011, Fiat raised its share in Chrysler five times, each achieved after meeting the requirements set in an agreement with the U.S. Treasury in 2009. The requirements include reaching $1.5 billion in Chrysler vehicle sales outside the United States, Mexico and Canada.
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