Fiat Increases Ownership in Chrysler Group
An Italian automaker has increased their share of ownership in one of the top U.S. car manufacturers.
Fiat’s ownership interest in Chrysler Group LLC increased from 25 to 30 percent, after the company met the second of three performance-related milestones.
The second milestone, outlined in a 2009 operating agreement between Chrysler and Fiat, required Chrysler Group to get cumulative revenues of more than $1.5 billion attributable to company sales made outside of the United States, Canada, and Mexico. Also, At least 90 percent of Fiat dealers in Brazil and the European Union are able to sell rebadged Chrysler Group products, terms which have been met by the company.
After the initial agreement, Fiat originally owned 20 percent of Chrysler, but increased their ownership when Chrysler met the first milestone of their agreement in January 2011, when they produced a new fuel efficient robotized engine. The third milestone expected of Chrysler is to produce a 40-mile-per-gallon vehicle based on Fiat platform technology.
Currently, the United Auto Worker’s VEBA (Voluntary Employees Beneficiary Association) owns 59.2% of the company, Fiat owns 30%, the U.S. Treasury owns 8.6%, and Canadian Governments own 2.2%.