With the launch of the new Dodge Dart, making its debut at next week’s North American International Auto Show, Chrysler expects to grab a larger share of the growing compact car segment.
But the maker’s Italian partner Fiat will grab an immediate larger stake in the U.S. maker – boosting its holdings by 5% for adding a new model to the Chrysler line-up that can deliver at least 40 miles per gallon on the highway.
That was one of the stipulations set by the White House as part of the 2009 bailout of Chrysler. Fiat initially was granted a 20% stake and effectively put in charge of the U.S. maker’s turnaround. Since then, Fiat has steadily increased its holdings by meeting a series of additional requirements – most recently by paying off Chrysler’s remaining federal loans and then buying out the shares in the carmaker owned by the U.S. and Canadian governments.
With this move, Fiat now holds a 58.5% stake in Chrysler, Sergio Marchionne serving as CEO of both makers.