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Could Fiat possibly buy out Chrysler in the future?



Fiat’s stake in Chrysler has increased from 20 per cent to 25 per cent, the firms have announced.


The news comes as Chrysler achieved the first of three performance-related milestones under Fiat ownership
As stated in its operating agreement in June 2009, Chrysler Group issued a commitment letter to the U.S. Treasury stating that the firm has received the appropriate governmental approvals to begin production of its Fully Integrated Robotised Engine (FIRE) in its Dundee, Michigan facility.
As a result, Fiat’s ownership interest increased automatically under the terms of the agreement.


The 1.4-litre MultiAir engine will be introduced first into the new Fiat 500 and the company will be looking to increase its share holding in the company to 35 per cent with the completion of Chrysler’s remaining performance targets, at a rate of five per cent per target reached.
 

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This is news to me, who would've known Fiat has a stake in Chrysler.

Before they owned 20% now its 25%, this could be a growing trend....we need more time to see what goes on with the 2 manufactures. Chrysler is still building new cars, i doubt they will be bought out by Fiat.
 

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I think this is a move to help prop up Chrysler, they did not do so well in the mini recovery we had in the 4th quarter 2010. They also started building late in 2010 because of so much almost bankruptcy 2009 inventory still floating around. The dealers around here are still selling 2010's and I have not seen any 2011's on the road yet especially the refreshed by Fiat models and the cars with the new v6. The 20 to 25 percent price increase on some 2011's and 20 percent discounts on the 2010's isn't helping either.
 

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Chosen_1

The Fiat investment in Chrysler has been in the news for quite a while, perhaps about 15 or 18 months or so. Others will have a better idea than I do. The Fiat investment was approved by the US government as part of the 2008/ 2009 gov't aide package.

But in general, Fiat is taking both an ownership role and a management role. It is entirely possible that Fiat will have a major role in running the company as well as providing auto technology.

Remember that Chrysler does sell cars in Europe; Fiat want to sell cars in North America. Buying into Chrysler gives them an established dealer network withoug starting from scratch. Chrysler also needs some help in the small, efficient car department. They haven't been able to build a small, fuel-efficient car of decent quality in my memory. Fiat engines and platforms will form the basis of future Chrysler cars here, and they will share car components in Europe.
 
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