Filed under: Chrysler, Earnings/Financials, Fiat
Fiat currently owns 25 percent of
Chrysler, but that stake will reportedly jump to 30 percent in the next couple weeks.
Automotive News reports that the Italian automaker is weeks away from satisfying additional requirements needed to bump the ownership stake by another five percent.
Unnamed sources claim that Fiat has already met a requirement that states that Chrysler receives $1.5 billion of its revenue outside of North America. The next step is to offer Chrysler vehicles to 90 percent of Fiat's Latin American dealers. Fiat will reportedly meet that goal by rebadging Chrysler vehicles as Fiats at Latin American dealerships. One vehicle that will reportedly receive the rebadge treatment is the
Dodge Journey, which will be built in Mexico and renamed the Fiat Freemont. Fiat currently holds the largest share of the emerging Brazil market, with a substantial 22.3 percent share.
Fiat will receive another five percent of Chrysler by building a Fiat-based product in the U.S. that hits 40 miles per gallon or better. If Fiat wants to increase its share to an absolute majority of 51 percent, the automaker will need to fork over $1.14 billion by the end of the year. If the automaker waits until 2012, that number will jump to $1.37 billion.
[Source:
Automotive News - sub. req.]
Report: Fiat to up stake in Chrysler to 30 percent originally appeared on Autoblog on Wed, 06 Apr 2011 11:32:00 EST. Please see our terms for use of feeds.
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06-04-2011, 06:40 PM
