ITALY: Fiat ‘will complete Chrysler deal in 2014’
Fiat boss Sergio Marchionne said that he expects to complete the acquisition of Chrysler next year. The original target had been 2015.
He told a Turin forum hosted by la Repubblica newspaper that he was confident a price for the remaining stake would be agreed by 2014.
The stumbling block is a disagreement over the value of on an option with the United Auto Workers retiree healthcare trust called VEBA that owns 41%.
Fiat has offered the trust US$139.7m but the trust wants US$343m.
"We will resolve it in 2014," Marchionne said.
Fiat and Chrysler announced results for 2012 that showed both companies in profit. However, Fiat was only in the black on the back of Chrysler's strong performance and its Chrysler shareholding (currently 68%).