Fiat Buys More of Chrysler, Creeps Toward Total Control
Fiat has exercised an option to purchase another 3.3 percent of Chrysler shares today, part of CEO Sergio Marchionne’s plan to purchase the automaker.
Including today’s purchase, Fiat has exercised three of its six monthly options, bringing its ownership stake to 68.49 percent. The Italian automaker’s ultimate goal is to have full control of Chrysler to better compete with industry leaders including Toyota, General Motors, and Volkswagen.
SEE ALSO: Fiat Seeking $10 Billion Loan to Complete Chrysler Merger
Chrysler has become Fiat’s most reliable profit generator as the Italian automaker continues to struggle in Europe. Fiat has the right to increase its stake to 75 percent in a three-year process until July 2014, after obtaining 20 percent of Chrysler in 2009 for free. The 3.3 percent is being purchased from VEBA, a medical benefits trust for Chrysler’s retirees.
Fiat has yet to reach an agreement with VEBA on the acquisition of its remaining stake in Chrysler according to Marchionne.
[Source: Automotive News]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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