In a joint statement Fiat and Chrysler have announced that the Italian automaker has now solidified a 30 percent stake in the American brand, up from the 25 percent share previously held. The increased ownership comes as Fiat achieved its latest milestone in resurrecting Chrysler after saving the company from bankruptcy in 2009. Fiat is looking to further grow its interest in Chrysler, with a goal to control 51% by year’s end.
In order to achieve the 30 percent control, Fiat had to set out a plan to hit $1.5 billion in revenue from the sale of Chrysler products outside of North America. This has been solidified with an announcement that 90 percent of Fiat dealers in both Brazil and Europe will begin selling Chrysler products.
Fiat now has the option to increase its stake in Chrysler to 35 percent once it begins production of a Fiat-based 40-mpg car in North America. At that point the Italian automaker will have the option to buy out the remaining 16 percent in order to take a controlling share in Chrysler.
With today’s announcement, Fiat now owns 30 percent of Chrysler, the UAW owns 59.2 percent, leaving 8.6 percent in the hand’s of the U.S. Treasury and 2.2 percent shared between the Canadian federal and Ontario provincial governments.