Fiat Increases Stake in Chrysler to 30 Percent
In a joint statement Fiat and Chrysler have announced that the Italian automaker has now solidified a 30 percent stake in the American brand, up from the 25 percent share previously held. The increased ownership comes as Fiat achieved its latest milestone in resurrecting Chrysler after saving the company from bankruptcy in 2009. Fiat is looking to further grow its interest in Chrysler, with a goal to control 51% by year’s end.
In order to achieve the 30 percent control, Fiat had to set out a plan to hit $1.5 billion in revenue from the sale of Chrysler products outside of North America. This has been solidified with an announcement that 90 percent of Fiat dealers in both Brazil and Europe will begin selling Chrysler products.
Fiat now has the option to increase its stake in Chrysler to 35 percent once it begins production of a Fiat-based 40-mpg car in North America. At that point the Italian automaker will have the option to buy out the remaining 16 percent in order to take a controlling share in Chrysler.
With today’s announcement, Fiat now owns 30 percent of Chrysler, the UAW owns 59.2 percent, leaving 8.6 percent in the hand’s of the U.S. Treasury and 2.2 percent shared between the Canadian federal and Ontario provincial governments.
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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for god's sake, stop. It is not news anymore. Apr 6 - http://www.autoguide.com/auto-news/2011/04/fiat-increasing-stake-in-chrysler-to-30-percent.html Mar 30 - http://www.autoguide.com/auto-news/2011/03/fiat-plans-51-stake-in-chrysler-this-year.html Jan 12 - http://www.autoguide.com/auto-news/2011/01/fiat-raises-stake-in-chrysler-to-25-percent.html Jan 3 - http://www.autoguide.com/auto-news/2011/01/fiat-looking-to-increase-stake-in-chrysler-ahead-of-possible-ipo.html