Fiat Reaches Deal to Buy Remaining Chrysler Shares
Fiat has finally reached an agreement with the UAW’s VEBA Trust to purchase the remaining 41.46 percent stake that it does not own.
Fiat will pay an overall $3.65 billion for the remaining shares. VEBA will also receive an additional $700 million paid annually over the course of four years. The deal is expected to be completed on or before January 20.
“In the life of every major organization and its people, there are defining moments that go down in the history books,” Fiat-Chrysler CEO Sergio Marchionne said. “For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments.”
SEE ALSO: Chrysler Files IPO, Speeds Valuation of VEBA Shares
The deal announced today also includes an agreement that the UAW will support Chrysler’s manufacturing operations, although statements issued by both Fiat and Chrysler didn’t specify the details of that agreement.
Late last year, Marchionne announced a plan to reinvigorate sales for Fiat as well as its Alfa Romeo and Maserati brands. By fully owning Chrysler, Fiat will gain access to cash from the American brand that will help solidify the Italian brand’s plans.
Fiat has been leaning on Chrysler to sustain profit as the European auto market continues to struggle.
Discuss this story at our Fiat forum.
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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Thanks, Obama. Instead of letting Chrysler file bankruptcy and potentially re-organize after shedding debt, or generally letting Chrysler and/or shareholders decide how best to proceed, you sold the entire company to a crappy foreign manufacturer.
Chrysler was failing, and they had plenty of chances over the years to turn things around plain and simple. If anything blame the business structure of the company, and basic human greed which is sadly common in the majority of old school business mentality. I say good riddance to one more large corporate greed machine, you don't need to look as high up the chain as the president to place blame on what went wrong. I only Hope that Fiat won't make the same mistakes while at the same time maintaining and/or creating new jobs. Competition is good for the market and so is change, it keeps companies from becoming stagnant, and in the end we get better products. So be calm, do your research, and imho America in general could use a few more of these shake-ups to get it out of its ever looming debt crisis.