Chrysler Officially Becomes A Subsidiary Of Fiat

Fiat has completed its buyout of Chrysler, making the U.S. business a wholly-owned subsidiary of the Italian carmaker as it gears up to use their combined resources to turn around its loss-making operations in Europe.

The company announced on January 1 that it had struck a $4.35 billion deal - cheaper than analysts had expected - to gain full control of Chrysler, ending more than a year of tense talks that had obstructed Chief Executive Sergio Marchionne's efforts to create the world's seventh-largest auto maker.

Fiat said on Tuesday that it had completed the acquisition of the remaining 41.46 percent stake in Chrysler from a retiree healthcare trust affiliated with the United Auto Workers (UAW) union. The trust, known as a voluntary employee beneficiary association, or VEBA, received $3.65 billion in cash for the stake, $1.9 billion of which came from Chrysler and $1.75 billion from Fiat.

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dlin - 1/21/2014 3:09:29 PM

+1 Boost

Default car of Italian Mofia in US? : )

mini22 - 1/21/2014 6:06:43 PM

+2 Boost

Well-You have to say that Marchionne has completed another amazing trick. Daimler paid over 10 times as much for Chrysler in the mid 90's.
They invested very little in improving Chrysler inventory during their ownership.Th 300 and Charger were their only claim to fame. They did nothing to improve any other Chrysler product.Marchionne oversaw an 18 month product refresh as well as 3 all new products-Cherokee, Dart, and now the new 200.He introduced Fiat back to the US market. More Fiats are sold in the US then all of Italy. And later this year Alfa finally comes back to the US. This acuasition has allowed him to save Fiat again
from potential liquidation.Chrysler has had almost 2 yrs. of consecutive monthly sales gains. It will be interesting if the company is named Fiat/Chrysler or Chrysler/Fiat. Also were the board will keep main headquarters and which stock exchange the company will trade in.

drinkglory - 1/24/2014 11:46:00 AM

+1 Boost

Can we now officially call it the big two?