Fiat Increases Chrysler Stake to 30 Percent
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Those who two years ago sided with disaster and gave the Fiat-Chrysler alliance no chance are still looking for signs of distress, but are unable to find any. Two years into the deal, the marriage between the two still works like a charm, the most powerful proof of that being the announcement made on Tuesday by Chrysler.
The American company, together with the Italian partner, agreed in 2009 to work in stages. Once a stage was complete, Fiat would be allowed to take an extra percentage in Chrysler, as a type of “thank you” for the efforts made.
On April 12, 2011, following the completion of the second of three performance-related milestones (achieve cumulative revenues of more than $1.5 billion attributable to Company sales made outside of Canada, Mexico and the United States), Fiat increased its stake in Chrysler from 25 to 30 percent.
As a result of the increase in share for Fiat unveiled today, the majority owner still remains the UAW VEBA (59.2 percent), followed by Fiat. The US government, through the US Treasury, holds 8.6 percent, while the Canadian governments hold 2.2 percent.
This is the second increase in share achieved by Fiat this year, after in January 2011 Chrysler produced the first fuel efficient Fully Integrated Robotized Engine (FIRE) and gave Fiat the right to increase its share from 20 to 25 percent.
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