Fiat to Increase Chrysler Stake to 35 Percent

Pleased with how things seem to be going in the US, Fiat and Chrysler CEO Sergio Marchionne revealed late last week the Italian manufacturer will strengthen its presence in the States by increasing its stake in Chrysler to 35 percent in the next two years.

"In the next 24 months maximum we must arrive at 35 percent of Chrysler," Marchionne said according to MSNBC. "The most important thing is that Chrysler is proceeding on a turnaround plan, the results are good."

"Fiat did not go abroad on a whim, and certainly did not go to forget Italy. We are there to make the company stronger."

The announcement comes at a time when Italy, and especially Fiat workers, are increasingly displeased with Marchionne's plans for the local business. According to the Italian media, Fiat will shed 5,000 of its workforce in Italy and severely reduce the number of models produced. Most in Italy feel this is because Fiat is more interested in what happens with Chrysler than with its own business.

Marchionne denies such plans exist and keeps saying all will be revealed when Fiat presents its five-year business plan April 21. He did confirm however the cease in production at the Sicilian plant is a must.

"We are doing it because, within the limits of possibility, and without endangering the solidity of our company, we maintain it is our duty to give priority to the country where Fiat has its roots."
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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