Detroit Bureau on Twitter

Posts Tagged ‘fiat to increase chrysler stake’

Fiat Planning to Push Chrysler Stake To 35%

“Barring Unforseen Circumstances.”

by on Oct.22, 2010

CEO Sergio Marchionne expects Fiat to boost its stake in Chrysler to 35% by late next year.

Look for Fiat to bump up its stake in Chrysler Group LLC to 35%, nearly double what it has held since the U.S. maker emerged from bankruptcy last year, says the man who serves as CEO for both automakers.

Coming out of Chapter 11, the White House approved a 20% stake for Fiat and said it could increase its holdings in 5% increments by meeting three critical objectives.  “Barring unforeseen circumstances,” that will happen by the end of next year, Sergio Marchionne told analysts during a conference call to discuss the Italian maker’s third-quarter earnings.

Subscribe Now!

The three hurdles for Fiat include boosting Chrysler’s global sales, something Marchionne admitted is “fraught with difficulties,” though the two partners are already working to expand worldwide distribution by, among other things, leveraging Fiat’s strong presence in markets like Latin America.