Fiat Raises Chrysler Stake to 30 Percent

Italian automobile manufacturer Fiat confirmed on Tuesday that it had upped its stake in Chrysler to 30%, a move that saw another 5% of Chrysler's shares going to Fiat. Fiat S.p.A., an acronym for Fabbrica Italiana Automobili Torino, has bought into Chrysler after its bankruptcy. Both companies announced that they were going to form a global alliance in January, 2009. According to the New York Times DeakBook, "That target is one of three set out in the two carmakers' 2009 agreement. The first saw Fiat raise its stake in January from 20 percent to 25 percent, after Chrysler began producing a fuel-efficient engine at a Michigan plant. The third 5 percent increase in Fiat's stake would occur if Chrysler succeeds in producing a fuel-efficient vehicle based on a Fiat platform." Fiat has the option of increasing that to as much as 35%. This brings Fiat to 30% of Chrysler's shares, with the United Auto Workers trust known as Veba holding 59.2%, the American government holding 8.6% and Canadian governments holding 2.2%. Chrysler continues to manufacture its Chrysler brands, as well as Dodge, Jeep, and Ram vehicles. It will also produce smaller Chrysler-brand cars based on Fiat design and technology.