Fiat can increase its ownership in Chrysler Group to 35% through an additional performance-related milestone, U.S. production of a 40 mpg vehicle based on “Fiat technology.”
Chrysler Group today announced that Fiat’s ownership interest in Chrysler has increased from 25% to 30%, effective immediately.
This newly enlarged Fiat position in the Michigan-based automaker is the result of Chrysler’s achievement of the second of three performance-related goals dictated by the U.S. Treasury Department when it financed a Chrysler bankruptcy and reorganization in 2009.
The second goal required Chrysler Group to achieve cumulative revenues of more than $1.5 billion attributable to Chrysler Group sales made outside of Canada, Mexico and the United States (the “NAFTA Countries”) after 10 June 2009, and to enter into the following with Fiat or its affiliates:
- an agreement covering at least 90% of Fiat dealers in Brazil for the distribution of one or more Chrysler products, including Chrysler Group products rebadged and sold under the brand names of Fiat Group Automobiles;
- an agreement covering at least 90% of Fiat dealers in the European Union (EU) for the distribution of one or more Chrysler products, including Chrysler Group products rebadged and sold under the brand names of Fiat Group Automobiles, and providing for the pooling of Chrysler Group and Fiat vehicle fleets in the EU for CO2 emissions ratings; and,
- an agreement providing for compensation to the Chrysler for the use of its technology by Fiat or its affiliates outside of the NAFTA countries.
As a result of the change, the ownership interests of Chrysler Group’s members are now:
| Chrysler Group Ownership – April 2011 | |
| UAW VEBA | 59.2% |
| Fiat | 30.0% |
| U.S. Treasury | 8.6% |
| Canadian Governments | 2.2 % |
Chrysler Group reached the first performance event in January 2011 with the United States production of the fuel efficient Fully Integrated Robotized Engine (FIRE) in Dundee, MI thereby increasing Fiat’s ownership from 20% to 25%. Fiat can increase its ownership in Chrysler Group to 35% through an additional performance-related milestone relating to commercial production in the United States of a 40-mile-per-gallon vehicle based on Fiat platform technology.
