Chrysler has been on a very strong upward trend, both as a company and with their products. However, much of this is attributed to Fiat’s purchase of the Chrysler Group LLC because without the acquisition, for all we know Chrysler could’ve ended up the same way the company’s former subsidiary Plymouth did: dead. When Fiat SpA purchased a grand total of 7.5% of Chrysler, which eliminated the taxpayer ownership of the auto group, the Italiam make spent about $625 million for the company’s holdings.
Now though, Fiat has decided to increase their amount of ownership of Chrysler. Upon finalizing the deal, Fiat paid $75 million for the remaining stake held by the United Auto Workers Union and the nation of Canada.
“With today’s closing, the U.S. government has exited its investment in Chrysler at least six years earlier than expected,” said Timothy Massad, the Treasury Department’s assistant secretary for financial stability.
With Fiat’s increase in ownership, Fiat’s CEO Sergio Marchionne is hard at work to make sure Fiat and Chrysler integrate as much as possible to reduce costs and achieve a target revenue of $140 billion by 2014.
“With the business strategies of Fiat and Chrysler irrevocably linked, we believe a merger is a logical next step,” said Stefan Burgstaller, an analyst for Goldman Sachs Group Inc.
– By: Chris Chin