Fiat buying remaining stakes of Chrysler Group for USD 4.35 billion

Chrysler will soon become a fully owned subsidiary of the Fiat family, as the company has finally signed an agreement to capture the rest 41.46 per cent stake in Chrysler for USD 4.35 billion (around Rs. 29,900 crore). Chrysler Group and the UAW have agreed to a memorandum of understanding to supplement Chrysler Group's existing collective bargaining agreement. Under the agreement, Chrysler Group will provide additional contributions to the VEBA trust of an aggregate of $700 million in four equal annual installments.

John Elkann, Chairman of Fiat said, “I have been looking forward to this day from the very moment that we were chosen to assist in the rebuilding of a vibrant Chrysler back in 2009. The work, commitment and achievement I have witnessed from Chrysler over the past four and a half years is nothing short of exceptional, and I take this opportunity to officially welcome each and every one of the people in the Chrysler organization to the integrated Fiat-Chrysler world.”

Sergio Marchionne, Chief Executive of Fiat and Chairman and CEO of Chrysler Group, had this to say: “In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments. I will be forever grateful to the leadership team for the support and unwavering dedication shown to the integration project that today has taken its final shape. The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment.” 

Source : CarDekho - Fiat buying remaining stakes of Chrysler Group for USD 4.35 billion