The Fiat Group announced today that it has raised its stake in Chrysler LLC from 20 to 25 percent, after the company met the first of three performance-related targets. The automaker received all governmental approvals and will begin production of the Fully Integrated Robotized Engine (FIRE) at its Dundee, Michigan, plant. Consequently, Fiat’s stake increased automatically under the terms of the Operating Agreement outlined on June 10, 2009.
The first North American application of the 1.4-liter FIRE gasoline engine with MultiAir Technology will be in the new Fiat 500, which Chrysler Group will begin to distribute soon through newly appointed dealers in the States.
If the company meets two more criteria, Fiat will have the opportunity to further increase its ownership in Chrysler to 35%, in 5 percent increments. The first milestone is related to revenue and sales growth outside of the NAFTA (North American Free Trade Agreement) region, while the second criteria concerns the commercial production of a 40-mpg vehicle, based on a Fiat platform.
The ownership interests of Chrysler Group’s members are now:
UAW VEBA 63.5 percent
Fiat 25.0 percent
U.S. Treasury 9.2 percent
Canadian Government 2.3 percent
By Csaba Daradics