2024 Author: Eric Donovan | [email protected]. Last modified: 2023-12-16 21:13
Fiat has also acquired the last minority shares in Chrysler. The now whole daughter of the Italian automaker has made up for the mother's losses in Europe in recent years.
Fiat secures full control over the US subsidiary Chrysler. The Italian carmaker is taking over the minority stake in a $ 4.35 billion (EUR 3.16 billion) deal that is currently held by the health fund of the North American auto union UAW. Fiat is better positioned in the tough auto business compared to rivals such as Volkswagen, Opel parent General Motors or Ford.
Clear division between Fiat and Chrysler
"Thanks to the uniform ownership, we can now implement our vision of a global car manufacturer," said CEO Sergio Marchionne on Wednesday in Turin. While Fiat mainly sells its cars in Europe and Latin America, Chrysler from Auburn Hills near Detroit is strong in North America. The Italian brands Alfa Romeo, Lancia and Abarth as well as the American brands Jeep, Dodge and Ram also belong to the group.
The Italians joined Chrysler in 2009 when the US manufacturer slid into bankruptcy during the economic crisis and had to be bailed out by the American taxpayer. Fiat offered technical know-how and in return received gradually more and more shares. Despite all prophecies of doom, the partnership proved to be a success: Chrysler has been making profits for more than two years, which helped Fiat survive the slump in the European auto market.
Months of negotiations between Fiat and Chrysler
The full integration of Chrysler into the Fiat group was opposed to the 41.5 percent share of the auto union that it had received for its concessions in the bankruptcy. Both sides have been negotiating a full takeover for months. However, the asking prices were miles apart. As a way out of this dilemma, Chrysler had already launched an IPO, which is now likely to be canceled.
The union's health fund will now receive $ 1.90 billion from Chrysler's coffers, and Fiat will pay another $ 1.75 billion when the deal is closed. The plan is for the shares to change hands by January 20th at the latest. In addition, the Chrysler fund will receive a further total of $ 700 million in four annual installments. (dpa)
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