Auburn Hills, Michigan – Fiat has increased its ownership in Chrysler from 25 per cent to 30 per cent, the result of Chrysler achieving the second of three performance-related milestones.
The milestone, as outlined in the company’s Operating Agreement of 2009, required the Chrysler Group to achieve cumulative revenues of more than US$1.5 billion, attributable to sales made outside of Canada, Mexico and the United States after June 10, 2009. The company was also required to enter into an agreement covering at least 90 per cent of Fiat dealers in Brazil for the distribution of one or more Chrysler products, including those rebadged and sold under Fiat Group’s brand names; a similar agreement with Fiat dealers in the European Union, and providing for the pooling of Chrysler Group and Fiat vehicle fleets in the EU for CO2 emissions ratings; and an agreement providing for compensation to the company for the use of its technology by Fiat or its affiliates outside of North America.
The ownership interests in Chrysler are now 59.2 per cent by the UAW Voluntary Employee Benefit Association (VEBA), 30.0 per cent by Fiat, 8.6 per cent by the U.S. Treasury, and 2.2 per cent by the Canadian governments.
Chrysler reached its first performance event in January 2011 with U.S. production of Fiat’s Fully Integrated Robotized Engine (FIRE) in Michigan, increasing Fiat’s ownership from 20 to 25 per cent. The Italian automaker has the opportunity to further increase its ownership to 35 per cent through an additional performance-related milestone related to commercial U.S. production of a 40 mpg vehicle based on Fiat platform technology.