Fiat Buys More of Chrysler, Creeps Toward Total Control

Fiat Buys More of Chrysler, Creeps Toward Total Control

Fiat has exercised an option to purchase another 3.3 percent of Chrysler shares today, part of CEO Sergio Marchionne’s plan to purchase the automaker.

Including today’s purchase, Fiat has exercised three of its six monthly options, bringing its ownership stake to 68.49 percent. The Italian automaker’s ultimate goal is to have full control of Chrysler to better compete with industry leaders including Toyota, General Motors, and Volkswagen.

SEE ALSO: Fiat Seeking $10 Billion Loan to Complete Chrysler Merger

Chrysler has become Fiat’s most reliable profit generator as the Italian automaker continues to struggle in Europe. Fiat has the right to increase its stake to 75 percent in a three-year process until July 2014, after obtaining 20 percent of Chrysler in 2009 for free. The 3.3 percent is being purchased from VEBA, a medical benefits trust for Chrysler’s retirees.

Fiat has yet to reach an agreement with VEBA on the acquisition of its remaining stake in Chrysler according to Marchionne.

[Source: Automotive News]

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