Fiat May Take Up To 70% Of Chrysler

Fiat has an option to increase its shareholdings to the American manufacturer Chrysler to 70% as the U.S. government is seeking to emerge from their investment in the auto industry, says Automotive News Europe.

Fiat could buy the remaining shares of U.S. Treasury over the next 12 months, after which she will pay the government debt, said a Chrysler official.

Chrysler announced in April that he would try to pay a new part of the government loan, allowing Fiat to exercise its option to increase the percentage of shares to 46% from 30 as it is today.

Sale of treasury shares held by the U.S. government would allow Fiat to get out completely from the Chrysler easier than would be expected if a public offering as originally anticipated, said Dennis Virag, president of an auto industry consulting group.

"It's a win-win: leave the government to leave early and allow Chrysler Chrysler to get out from under state more quickly," said Virag.

U.S. Treasury also holds 8.6% stake in Chrysler, and this percentage will be reduced when the manufacturer will meet the third threshold performance - the U.S. market launch of a car built in the U.S. with a consumption of 40 mpg (5.9 litres/100 km).

Source: http://www.fiat.com/


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