27 March 2010

Fiat to Take 35% Stake in Chrysler by 2012

FIAT intends to boost its control in Chrysler Group LLC to 35% within two years as Chief Executive Sergio Marchionne continues meeting his federally mandated targets. Looks like the Italians are starting to surprise a few skeptics already...

Mr. Marchionne, also CEO of Chrysler, announced the 2012 goal the same day Chrysler said it has made an offer to reinstate 50 U.S. dealers it closed last year and is talking to others in an effort to avoid arbitration.

Fiat was given a 20% stake in Chrysler last year as payment for taking over the operations of the U.S. auto maker, which emerged from bankruptcy last June. Mr. Marchionne can increase the stake if he shares small-car technology and expands Chrysler's international presence.

"I think in the next 24 months at the most we will arrive at 35%," Mr. Marchionne said following a Fiat shareholders meeting in Turin, Italy.

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