Once again, the rumours going around on the Internet last week have turned out to be true. Fiat has increased its stake in the Chrysler Group by 5%, after meeting the American government’s requirements.
This measure will enable the Italian automaker to sell Chrysler vehicles in its 550 Brazilian dealerships without having to negotiate new agreements.
Fiat dominates the South American country’s automotive scene in terms of sales, with 761,400 units sold in 2010, making Brazil Fiat’s second largest market after Italy.
When Chrysler declared bankruptcy, Fiat struck a deal with the American government, agreeing to share its technology and executive team with the auto giant in return for a 20% stake in Chrysler, and the possibility to increase it to 35% without paying any cash if certain performance goals were reached.
Here’s how the Chrysler Group’s shares are currently divided:
Source : Automotive News
This measure will enable the Italian automaker to sell Chrysler vehicles in its 550 Brazilian dealerships without having to negotiate new agreements.
 |
| Photo: Fiat |
Fiat dominates the South American country’s automotive scene in terms of sales, with 761,400 units sold in 2010, making Brazil Fiat’s second largest market after Italy.
When Chrysler declared bankruptcy, Fiat struck a deal with the American government, agreeing to share its technology and executive team with the auto giant in return for a 20% stake in Chrysler, and the possibility to increase it to 35% without paying any cash if certain performance goals were reached.
Here’s how the Chrysler Group’s shares are currently divided:
- United Auto Workers’ health trust: 59,2%
- Fiat: 30%
- U.S. Treasury: 8,6%
- Canadian government: 2,2%
Source : Automotive News