ITALY/US: Fiat hikes Chrysler stake to 58.5%
Under a provision of its 10 June, 2009 operating agreement, Chrysler recently wrote to to the US Department of the Treasury confirming it was "irrevocably committed to begin assembly of a vehicle [the Alfa Romeo Giulietta-based Dodge Dart] with an unadjusted combined fuel economy of at least 40 mpg in commercial quantities in a production facility located in the United States".
That triggered an automatic 5% increase in Fiat's Chrysler holdings and the Italian automaker now holds 58.5% with the balance owned by the United Auto Workers (UAW) VEBA benefits trust fund.
A pre-production Dart achieved an unadjusted combined rating of 40 mpg in official US government fuel economy tests, Chrysler said. The four-door compact sedan will be built in Belvidere, Illinois after making its public debut at the Detroit show next week.
This is the fifth time in the last year Fiat has increased its ownership in Chrysler.
In June 2009, It took a 20% stake in exchange for sharing intellectual property and other resources. Fiat announced a boost to 25% on 10 Janauary 2011 after Chrysler received government approval to begin commercial production of the Fiat-designed Fully Integrated Robotised Engine (FIRE) in Dundee, Michigan.
On 12 April, Fiat’s ownership rose to 30% after Chrysler reached cumulative revenue of over US$1.5bn from sales made outside NAFTA and inked distribution agreements in Brazil and Europe, as well as a technology-use agreement.
After paying back its US and Canadian government loans in full last 24 May, six years early, Fiat exercised a call option to increase its Chrysler stake 16% to 46%.
On 21 July, Fiat said it had paid $500m to purchase the treasury’s remaining 6% stake in Chrysler and $125m to but the Canadian governments' remaining 1.5%, taking its holding to 53.5%.
This month we are highlighting research extracts from our QUBE Automotive Glazing sector intelligence service ahead of an automotive glazing webinar scheduled for July 10. These extracts look at panor...
An updated list of world premiere concepts and production models which appeared at the Paris motor show's 27 & 28 September press preview days....
- THE WEEK THAT WAS: Big fish eaten by bigger fish
- COMMENT: The UK's Scotland and EU parallels
- ANALYSIS: ZF puts in place a growth strategy
- VEHICLE ANALYSIS: MY2014 Peugeot 2008 1.2 VTi 82
- INTERVIEW: Paul Philpott, Kia UK President and CEO
- PARIS DEBUTS: Renault Clio Initiale Paris
- Jaguar launches India assembled XJ
- Lotus to restructure and up to 325 jobs could go
- And now (drum roll), the Nissan Leaf truck...
- Largest Rolls-Royce order ever bound for Macau