Fiat has made its intention with Chrysler know; control as much of the company as it possibly can. Rumor around the industry has it that Fiat CEO Sergio Marchionne could increase its stake in Chrysler from the current 30%, to 46%.
“This is the real goal Sergio Marchionne is working at,” reported Italian newspaper Corriere della Sera. “He wants to do it by June. He might be able to do it a bit earlier.”
Of course, given Chrysler’s financial situation a heavy dose of refinancing would first be needed. In order to increase its stake, Chrysler must settle its debts with the U.S. and Canadaian governemnts, bringing the outstanding total to a number less than $4 billion. In order to take a majority stake, the debt must be cleared.
Earlier this week, Fiat increased its share in Chrysler from 25 percent to 30 percent.
– By: Stephen Calogera
Source: Automotive News