DFW Auto Club
05-01-2009, 10:24 AM
Filed under: Government/Legal (http://www.autoblog.com/category/government-legal/), Plants/Manufacturing (http://www.autoblog.com/category/plants-manufacturing/), Chrysler, LLC. (http://www.autoblog.com/category/chrysler/), FIAT (http://www.autoblog.com/category/fiat/)
http://www.blogcdn.com/www.autoblog.com/media/2009/05/86297402-580op.jpg (http://news.smh.com.au/breaking-news-business/fiat-can-take-over-chrysler-from-2013-20090501-ap99.html)
We all know by now that Fiat will take an initial 20% stake in Chrysler in exchange for supplying the bankrupt automaker small-car platforms and fuel efficient drivetrains. Further down the road, Fiat will have the opportunity to purchase a large stake in Chrysler, upping its ownership to 35% and between 2013 and 2016, the Italian automaker can take an additional 16% share of Chrysler, bringing its total to 51% and gaining majority control. However, until Chrysler repays its loans to the U.S. Treasury, Fiat's share must be kept at 49%. For Fiat to take control of Chrysler, the crew from Auburn Hills will need to pay back over $10 billion in loans, and we remain suitable skeptical that Chrysler will be able to return the cash - particularly with new products from Fiat still 18 months away, at least.
[Source: SMH (http://news.smh.com.au/breaking-news-business/fiat-can-take-over-chrysler-from-2013-20090501-ap99.html) | Image Source: Vittorio Zunino Celotto/Getty]Fiat could take majority control of Chrysler as early as 2013 (http://www.autoblog.com/2009/05/01/fiat-could-take-majority-control-of-chrysler-as-early-as-2013/) originally appeared on Autoblog (http://www.autoblog.com) on Fri, 01 May 2009 10:59:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Read (http://news.smh.com.au/breaking-news-business/fiat-can-take-over-chrysler-from-2013-20090501-ap99.html) | Permalink (http://www.autoblog.com/2009/05/01/fiat-could-take-majority-control-of-chrysler-as-early-as-2013/) | Email this (http://www.autoblog.com/forward/1533902/) | Comments (http://www.autoblog.com/2009/05/01/fiat-could-take-majority-control-of-chrysler-as-early-as-2013/#comments)http://feedads.g.doubleclick.net/~at/_8gVlVkxNMG0sCAco5E08knhKVo/0/di (http://feedads.g.doubleclick.net/~at/_8gVlVkxNMG0sCAco5E08knhKVo/0/da)
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We all know by now that Fiat will take an initial 20% stake in Chrysler in exchange for supplying the bankrupt automaker small-car platforms and fuel efficient drivetrains. Further down the road, Fiat will have the opportunity to purchase a large stake in Chrysler, upping its ownership to 35% and between 2013 and 2016, the Italian automaker can take an additional 16% share of Chrysler, bringing its total to 51% and gaining majority control. However, until Chrysler repays its loans to the U.S. Treasury, Fiat's share must be kept at 49%. For Fiat to take control of Chrysler, the crew from Auburn Hills will need to pay back over $10 billion in loans, and we remain suitable skeptical that Chrysler will be able to return the cash - particularly with new products from Fiat still 18 months away, at least.
[Source: SMH (http://news.smh.com.au/breaking-news-business/fiat-can-take-over-chrysler-from-2013-20090501-ap99.html) | Image Source: Vittorio Zunino Celotto/Getty]Fiat could take majority control of Chrysler as early as 2013 (http://www.autoblog.com/2009/05/01/fiat-could-take-majority-control-of-chrysler-as-early-as-2013/) originally appeared on Autoblog (http://www.autoblog.com) on Fri, 01 May 2009 10:59:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Read (http://news.smh.com.au/breaking-news-business/fiat-can-take-over-chrysler-from-2013-20090501-ap99.html) | Permalink (http://www.autoblog.com/2009/05/01/fiat-could-take-majority-control-of-chrysler-as-early-as-2013/) | Email this (http://www.autoblog.com/forward/1533902/) | Comments (http://www.autoblog.com/2009/05/01/fiat-could-take-majority-control-of-chrysler-as-early-as-2013/#comments)http://feedads.g.doubleclick.net/~at/_8gVlVkxNMG0sCAco5E08knhKVo/0/di (http://feedads.g.doubleclick.net/~at/_8gVlVkxNMG0sCAco5E08knhKVo/0/da)
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