Fiat to acquire remaining interests in Chrysler Group

Fiat, one of the world’s largest automotive manufacturers (and Italy’s largest auto maker) has announced that it is a few days away from acquiring a complete stake in the Detroit based Chrysler Group.

Fiat currently owns and controls 58.5384% of the Chrysler Group and the remaining 41.4616% lies with the VEBA Trust. According to an official release by Fiat, the remaining stake will be bought for a total amount of $3.65 Billion. The Chrysler group too has to contribute a total of $700 million to the VEBA group in four instalments with the first instalment being made on closing the transaction between the Fiat group and the VEBA group. The rest will be made on three subsequent years on the anniversaries of theday the deal was made.

The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) has also agreed to certain commitments to continue to support the industrial operations of the Chrysler group post the acquisition.  The UAW has also pledged its support on the further implementation of the Fiat-Chrysler alliance, including its efforts to cooperate in the continued manufacturing of products by the Fiat-Chrysler group.

Commenting on the occasion, Fiat and Chrysler CEO Sergio Marchionne said “In the life of every major organisation and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments."

The Chrysler group currently own the Jeep, Dodge, SRT and Chrysler brands whereas Fiat currently own the Fiat, Ferrari, Lancia, Alfa-Romeo, Maserati, Iveco and a few others. The collaboration between these two automotive giants may herald a new era in affordable and stylish cars, especially to the American sub-continent. Fiat’s engine manufacturing prowess will also find new avenues and platforms making the Italian conglomerate an even bigger force to reckon with in terms of worldwide size and reach. The deal is said to be completed on the 20^th of January, 2014.