Fiat Aims To Increase Its Ownership Of Chrysler

By Author: Marty Vergel Baes
Total Articles: 423
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Fiat under the management of its current CEO Sergio Marchionne plans on significant things that would somehow change Chrysler’s fate. After paying Chrysler’s loans from the US and Canadian government six years before its due date, Marchionne proves to be unsatisfied yet. Due to this, Fiat under his leadership plans on improving their grip on Chrysler that will eventually benefit car finders who want to purchase vehicles with the Chrysler brand attached to it. This goal would only be accomplished by buying the shares of Chrysler from other share holders to allow Fiat’s management to implement policies that would improve Chrysler’s sales such as providing better auto financing deals for potential buyers.

Fiat has previously announced that they would be spending about $500 million in order to purchase the shares of Chrysler that is currently on the hands of the US treasury department. Given this, Fiat’s total spending for Chrysler has increased to about $1.2 billion. In addition to this, Fiat’s ownership of Chrysler’s ...
... shares has increased from 30 percent to 46 percent. With this, Fiat will eventually take control of one of the American car makers in the US.

In the event that this deal would be pushed through, Fiat would be the fourth company that would be taking control of Chrysler within a span of ten years. Almost every car finder who is interested in Chrysler-made vehicles knows that the company had been passed on from one management to another. Chrysler was taken-over by Daimler in 1998 after paying about $36 billion. Chrysler was then purchased by Cerberus in 2009. In its descent to bankruptcy, the US government took over Chrysler until Fiat acquired it, paid its loans, and eventually owned a large chunk of the company.

Aside from this, there are rumoured deals between the Canadian government and Fiat for the purchase of their shares of Chrysler. This deal would further increase the shares owned by Fiat. However, Marchionne is still not satisfied with this. He is trying to look for ways as to how they would further purchase Chrysler sales from other owners. By doing this, Fiat would surely gain full control of Chrysler.