Fiat Exercises Options To Buy Additional 3.3% Of Chrysler Shares
- 10 Sep 2014
- Automakers, Manufacturing, Production
- Posted by Glenn Lidstone
- Comments Off on Fiat Exercises Options To Buy Additional 3.3% Of Chrysler Shares
Fiat exercises options to buy an additional 3.3% of Chryler’s shares.
This move is part of CEO Sergio Marchionne’s step-by-step purchases. His efforts intend to lead full control of Chrysler and the creation of a merged company.
Such a company would be able to compete better with industry leaders Toyota, General Motors and Volkswagen.
Fiat has been exercising options since mid-2012 to buy holdings of about 3.3 percent from the VEBA. VEBA is a medical-benefits trust for the U.S. carmaker’s retirees.
Including today’s purchase, Fiat has exercised three of its six-monthly options, increasing its stake to 68.49 percent.
Fiat exercises options aim to full control Chrysler, which would give it access to some of Chrysler’s cash flow for investments in new models.
Chrysler has become Fiat’s most reliable profit generator as the Italian company struggles to end losses in Europe that totaled 704 million euros ($903 million) in 2012.
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