Auburn Hills, Michigan – Fiat has increased its ownership of the Chrysler Group from 20 to 25 per cent, having achieved the first of three performance-related milestones. The Italian automaker’s stake in the American company is contingent upon reaching these milestones as set out by its operating agreement with the U.S. government.
As outlined in the agreement, Chrysler has received the appropriate governmental approvals and will begin commercial production of its Fully Integrated Robotized Engine (FIRE) at its plant in Dundee, Michigan. As a result, Fiat’s ownership interest increased automatically under the terms of the operating agreement. The first North American application of the 1.4-litre FIRE engine will be in the new Fiat 500.
The ownership interests of Chrysler Group’s members are now 63 per cent with the UAW VEBA; 25.0 per cent with Fiat; 9.2 per cent with the U.S. Treasury, and 2.3 per cent with the Canadian governments.
Fiat has the opportunity to further increase its ownership in Chrysler to 35 percent, in 5 percent increments, through two additional performance-related milestones related to revenue sales and growth outside of the NAFTA region, and commercial production in the United States of a 40 mile-per-gallon vehicle based on Fiat platform technology.