Fiat signed an agreement with Chrysler
Published On May 07, 2011 02:10 PM By CarDekho for Fiat Linea
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The US automobile producer Chrysler which was once liberated by the Italian auto manufacturer Fiat SpA during its tough time, might be overtaken by the same cluster as Fiat SpA is about to buy another 16% shares of the company. The news has been confirmed as the agreement has been made where Fiat SpA will pay $1.27 billion Euros for an additional 16 percent stake in the US automaker Chrysler this quarter, which will definitely heave its stake to 46 percent in a deal which is quite quick and reasonable than expected.
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Fiat, the 6thlargest automaker in Europe revealed, about its future agreement with Chrysler and its other shareholders where they would add another 5% by the end of 2011.
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According to the statements, Fiat holds 30% of Chrysler’s shares, which means adding up the two agreements; the Italian group will become 51% stake holder of the US automaker, which will indirectly give the power of attorney in hands of the Italian unit.
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According to sources, in the last week fiat would pay nearly $1.5 billion for the stake and the deal would be closed in a couple of months as Chrysler's debt with the US and Canadian governments is repaid. Fiat India portfolio includes cars like Fiat Grande Punto, Fiat Linea and Fiat Pailo Stile.
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Sergio Marchionne, Chief Executive, Fiat commented, the deal defines the big day for Fiat and declared Wednesday as "happiness" for Italy's largest industrial group. Moreover, he said that it is a dream day for the corporation, and will definitely give new heights to the company where they can aim to become the biggest automaker in Europe.
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