Auto123.com - Helping you drive happy

Fiat to own 51% of Chrysler by the end of 2011

Get the best interest rate
Khatir Soltani
One automaker's poison is another's meat
Little by little, Fiat is tightening its hold on Chrysler following the bailout measures designed to save the Big Three back in 2009. After increasing its stake to 30% two weeks ago, the Italian company has just confirmed its intentions to gradually up it to 46% in June and become the majority shareholder with 51% by the end of the year.

Photo: Fiat

All the evidence suggests that these two manufacturers were made for each other and the partnership will be a successful one. Fiat will be investing 1.27 billion dollars for the acquisition and is already selling Chrysler and Dodge products under its banner elsewhere in the world. The American giant is also currently selling Fiat models in North America and expects to add Alfa Romeo to its portfolio shortly.

Sergio Marchionne, president and CEO of both automakers, is well on his way to realizing his goal of creating a mega-company with head offices around the world that could sell 6 million cars per year.

By raising Fiat’s stake in Chrysler, he also hopes to accelerate the approval of a low-interest, 3.5-billion loan that could be used where most needed.

There are rumours that the Italian firm will acquire an additional 16% between 2013 and 2016 or once the government loans will be completely repaid.

The United Auto Workers’ health trust, which owns 59.2% of Chrysler’s shares, hadn’t responded to the news at the time of writing.

Several economic analysts are expecting Chrysler to post its first profits since the crisis by the end of the month.


Source : The Detroit News
Khatir Soltani
Khatir Soltani
Automotive expert
As a car enthusiast, he tests and compares vehicles from different categories through the eyes of the consumer, ensuring relevant and objective reviews.
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada