Fiat is reportedly eyeing raising its stake in Chrysler according to media outlets.

Speculation has centred on whether the Italian automaker could take a majority state in Chrysler – increasing its share from the current 20%.

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Any move would come after Fiat demerged its automobile business from its trucks and tractors division this week, with trading starting on the stock market.

Responding to questions concerning the subject, Fiat CEO Sergio Marchionne is quoted as saying: “I think it is possible.

“I don’t know whether it is likely, but it is possible that we go over 50% if Chrysler decides to go to the market in 2011.”

Speculation has also raised the possibility that should Fiat increase its Chrysler stake, it could repay some US state financial assistance to aid the Amercian automaker during the economic downturn.

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