Move brings FIAT majority ownership...
FIAT officials have announced that they inted to buy the US government’s full stake in Chrysler and achieve controlling interest/majority ownership of the company. The announcement comes just three days after Chrysler paid back its bailout loans from the Treasury Department, and the transaction will eliminate further government from involvement in Chrysler...
FIAT would hold 52% of Chrysler after obtaining the government’s shares. Under its agreement with the federal government, FIAT was given the option to buy the Treasury share within 12 months of Chrysler paying back its loans. They plan to have 57% of shares by the end of this year.
The partnership agreement struck in the wake of BK handed 5% of Chrysler to FIAT when they begin producing a car "rated at 40 miles per gallon." Fiat originally obtained 20% of Chrysler at the start of the union and then +10% more as bonus for selling Chryslers overseas and producing a fuel-efficient engine from FIAT at Chrysler factories.
CEO of Fiat and Chrysler Sergio Marchionne said he expects to have an initial public offering of Chrysler shares either late this year or in 2012. The company still holds an option on a full 70% of Chrysler shares.
“We are changing both the image and the substance of our group,” Mr. Marchionne said at the loan repayment ceremony. “And we are regaining the faith of the public at large and, even more importantly, of our customers.”
FIAT would hold 52% of Chrysler after obtaining the government’s shares. Under its agreement with the federal government, FIAT was given the option to buy the Treasury share within 12 months of Chrysler paying back its loans. They plan to have 57% of shares by the end of this year.
The partnership agreement struck in the wake of BK handed 5% of Chrysler to FIAT when they begin producing a car "rated at 40 miles per gallon." Fiat originally obtained 20% of Chrysler at the start of the union and then +10% more as bonus for selling Chryslers overseas and producing a fuel-efficient engine from FIAT at Chrysler factories.
CEO of Fiat and Chrysler Sergio Marchionne said he expects to have an initial public offering of Chrysler shares either late this year or in 2012. The company still holds an option on a full 70% of Chrysler shares.
“We are changing both the image and the substance of our group,” Mr. Marchionne said at the loan repayment ceremony. “And we are regaining the faith of the public at large and, even more importantly, of our customers.”
-NYT-
FIAT are really starting to impress a lot of people with their performance in The States
ReplyDeleteMarchionne = very sharp operator, and he knows the car business on every level, from FIAT to Ferrari
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