Chrysler Group on Monday said Fiat’s ownership had increased from 20 to 25% after the US firm achieved the first of three performance-related milestones.
Chrysler has issued an irrevocable commitment letter to the US Treasury stating that it had received the appropriate governmental approvals and would begin commercial production of the Fully Integrated Robotized Engine (FIRE) in its Dundee, Michigan, facility. As a result, Fiat’s ownership interest increased automatically under the terms of the operating agreement signed with the US treasury in 2009.
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The ownership interests of Chrysler Group’s members are now: UAW VEBA 63.5%, Fiat 25%, US Treasury 9.2% and Canadian governments 2.3%.
The 1.4-litre FIRE engine will be used in the Mexican built Fiat 500, on sale in the US soon.
Fiat has the opportunity to further increase its ownership in Chrysler to 35%, in 5% increments, through two additional performance-related milestones. The first relates to revenue and sales growth outside the NAFTA region and the second to commercial production in the United States of a 40mpg vehicle based on Fiat platform technology.
