Chrysler filed documents with the Security and Exchange Commission that revealed that parent company Fiat has a one year option to increase its stake in the American automaker to as much as 70 percent.
The increase is contingent on Chrysler repaying its government loans, and the automaker will be issuing new debt in a bid to allow Fiat to up its stake from 30 to 46 percent. Currently, the United States treasury holds an 8.6 percent stake in the company, but that should be reduced by year end, when Fiat begins production of an American made vehicle capable of hitting 40 mpg. The United States government is hoping to fully divest itself from Chrysler as soon as possible.
[Source: Automotive News]