Filed under: Government/Legal, Plants/Manufacturing, Chrysler, LLC., FIAT
We all know by now that Fiat will take an initial 20% stake in Chrysler in exchange for supplying the bankrupt automaker small-car platforms and fuel efficient drivetrains. Further down the road, Fiat will have the opportunity to purchase a large stake in Chrysler, upping its ownership to 35% and between 2013 and 2016, the Italian automaker can take an additional 16% share of Chrysler, bringing its total to 51% and gaining majority control. However, until Chrysler repays its loans to the U.S. Treasury, Fiat's share must be kept at 49%. For Fiat to take control of Chrysler, the crew from Auburn Hills will need to pay back over $10 billion in loans, and we remain suitable skeptical that Chrysler will be able to return the cash - particularly with new products from Fiat still 18 months away, at least.
[Source:
SMH | Image Source: Vittorio Zunino Celotto/Getty]
Fiat could take majority control of Chrysler as early as 2013 originally appeared on Autoblog on Fri, 01 May 2009 10:59:00 EST. Please see our terms for use of feeds.
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01-05-2009, 06:30 PM
