Chrysler Group has closed a deal which will see the brand pay $5 billion to a United Auto Workers (UAW) trust in order to complete its plan to buyout the union.
The announcement comes after Chrysler closed a bond sale and used the proceeds to pay off a note that the UAW trust received in 2009 as part of the bailout. The UAW trust no longer has a financial stake in the company and Fiat SpA is now in full control of Chrysler.
Last month, Fiat bought the 41.5-percent Chrysler stake held by the trust.
“This transaction brings to a successful and earlier than anticipated conclusion the process that led the U.S. and Canadian governments, the UAW and the (UAW trust), together with Fiat, to take on the task of reestablishing Chrysler as a viable automotive enterprise,” said Fiat Chrysler Automobiles CEO Sergio Marchionne in a statement. “Fiat and Chrysler together have satisfied all the monetary commitments that were made to Chrysler in 2009. None remain outstanding.”
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