Fiat Takes 25 Percent Stake in Chrysler
Having fulfilled three major performance-related milestones from the plan put on paper when the deal was signed in 2009, Fiat announced today it has increased the stake it holds in the American manufacturer, from 20 to 25 percent.
The milestones achieved by Fiat and Chrysler together are the revenue and sales growth achieved outside of the NAFTA region, commercial production in the United States of a 40-mile-per-gallon vehicle based on Fiat platform technology and the first North American application of the 1.4-liter FIRE engine with MultiAir Technology (in the Fiat 500).
“As outlined in its June 10, 2009 Operating Agreement, Chrysler Group issued an irrevocable commitment letter to the U.S. Treasury stating that the Company has received the appropriate governmental approvals and will begin commercial production of the Fully Integrated Robotized Engine (FIRE) in its Dundee, Mich., facility,” the car maker says in a statement.
Following the stake increase made by Fiat, the Chrysler ownership structure stands as follows : Fiat 25 percent, UAW VEBA 63.5 percent, US Treasury 9.2 percent and the Canadian government 2.3 percent.
This is only an intermediary step Fiat is taking towards becoming an even more important stake holder. If everything goes according to plan, will find itself with the right of holding at most 49 percent of the American carmaker, prior to the full repayment of the loans received from the US and Canadian governments.