Fiat increases stake in Chrysler to 25%
Fiat is seriously commited to rebuilding Chrysler, and to that end it’s increased its stake in the Michigan-based automaker by an additional five percent.
The reshuffled ownership breakdown still leaves the United Auto Workers as the largest shareholder at 63.5%, with Fiat’s stake now up to 25%, the U.S. Treasury Department retaining 9.2% and the Canadian government 2.3%.
The increased stake came with government approval as Chrysler meets certain performance parameters, in this case the production of the Fully Integrated Robotized Engine (FIRE) at its plant in Dundee, Michigan.
Fiat will have the opportunity to increase its stake by another five percent when it demonstrates growth in overseas markets, and again with the production of a 40 mpg vehicle in the United States. At that point Fiat will have had the opportunity to increase its stake to a maximum of 35%. Details in the press release after the jump.
[Source: Chrysler]
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Fiat increases stake in Chrysler to 25% originally appeared on Autoblog on Mon, 10 Jan 2011 16:23:00 EST. Please see our terms for use of feeds.
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