After meeting U.S. Government requirements, Fiat is increasing its stake in the Chrysler group to 30% from 25%. The main change is that now all Chrysler products sold in Latin America and Europe will carry a fiat badge. This allows the two carmakers to avoid negotiating new agreements with Fiat dealers in Brazil, where Fiat currently occupies the number-one brand spot.
Eileen Wunderlich, Chrysler Spokeswoman said, "It broadens the Chrysler Group-Fiat partnership and then it enhances the Chrysler Group's international position."
The UAW heath-care trust owns 59.2 percent, the U.S. Treasury has 8.6 percent, and the Canadian govt. has 2.2 percent.
Fiat intends to raise its share to 51 percent (5 percent more on performance bonuses and 16 percent will have to be bought for 1.14 -1.37 billion) before holding an IPO.
( Autonews )
csubowtie says:
11:37 AM, 04/12/11
So does that mean Europe will now have the Fiat Challenger to go along with the Mercedes Viper they already have?
stephen987 says:
11:55 AM, 04/12/11
I'm guessing they're more interested in having a Fiat Town & Country.
lostboyz says:
11:58 AM, 04/12/11
@stephen987, its actually a lancia voyager. They only dodge product going to europe is the journey rebadged as a fiat freemont. Chyrslers are going to be rebadged as lancias.
tmanz says:
12:15 PM, 04/12/11
mostly I think Fiat just wanted in on using NAFTA to get stuff into Brazil cheaper.
lostboyz says:
12:18 PM, 04/12/11
@tmanz, maybe you aren't sure how NAFTA works
firstwagon says:
12:52 PM, 04/12/11
As they increase their ownership to 51%, I wonder whose shares they are buying? Are the 2 governments selling out first or the union?
bodyblue says:
04:45 PM, 04/12/11
"Are the 2 governments selling out first or the union?"
One is just as bad to have in private business as the other.
angry_mushroom says:
08:32 PM, 04/12/11
Please kick the UAW out of the company.
ed124c says:
07:22 AM, 04/13/11
I have to say that the orange Fiat in the photo is twice as enticing as the not-at-all enticing silver model that Edmunds just tested.