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Fiat Increases Chrysler Stake To 25 Percent

By Nelson Ireson
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Fiat and Chrysler logos

Fiat and Chrysler logos



The first of the three conditions necessary for Fiat to increase its stake in Chrysler by up to 15 percent (from the intial 20 percent buy-in) has been met: the supply of the 1.4-liter FIRE engine in the new Fiat 500, allowing the company to raise increase its holding to 25 percent.

The FIRE, or Fully Integrated Robotized Engine, meets the requirement of a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles.

Fiat's additional five percent stake means the UAW VEBA now holds 63.5 percent, the U.S. Treasury holds 9.2 percent, and the Canadian government holds 2.3 percent.

Two more conditions remain, allowing another 10 percent ownership of Chrysler: supply a 40-mpg vehicle based on a Fiat platform; and providing Chrysler access to its global distribution network outside of North America.

[Chrysler]



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Comments (2)

  1. fb_541474784 avatar Jamie Peterson Posted: 1/10/2011 10:23am PST

    Fiat could have been much further down the road to purchasing Chrysler outright if it had started importing all Alfa Romeos to Chrysler showrooms from the outset.
     
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  2. By rickmyers Posted: 1/11/2011 12:32am PST

    They, Alfa's, probably didn't meet America's STUPID requirements for Safety and Emissions. I want to know why fiat doesn't make their Diesels available here in Chrysler's midsize cars, Jeep Liberty and Dodge Nitro,Jeep Grand Cherokee and Dodge Durango. Chrysler was using VW's diesel in Europe, why not here. I won't buy a Hybrid nor will I ever buy an all Electric car. When batteries have to be replaced and recycled not to mention the intial cost of the vehicle, e.g., Chevy Volt @ 42K, it is going to be a rude awakening.
     
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