Fiat reportedly set to raise stake in Chrysler
by Jeff Glucker
Oct 22nd 2010 www.autoblog.com
Sergio Marchionne, CEO of Fiat and Chrysler, has reportedly indicated that the Italian automaker is interested in raising its stake in the Auburn Hills automaker. Currently, Fiat owns 20 percent of Chrysler and it wants to raise that figure to 35 percent by the end of 2011. Fiat has had a strong third quarter, earning around $236 million.
According to the Detroit Free Press, in order to increase its ownership stake by 15 percent, Fiat has to hit three specific targets that are worth five percent apiece. The first goal is to launch the 1.4-liter MultiAir engine being built at Chrysler's plant in Dundee, Michigan. That engine is slated to go into the upcoming Fiat 500.
Second on the task list is for Chrysler to produce a car that achieves 40 miles per gallon. Marchionne believes this vehicle will enter production towards the end of 2011. It will be a compact hatchback branded as a Dodge.
^ but the UAW isn't looking to sell its stake, right?
I was thinking the 8 billion was more than enough for Fiat
& the less going into an IPO the better, no?
Well the UAW should be needing some of that money. They need it for pensions and (elections). My guess is that the prearranged deal says that all owner members must sell some of their stake perportionally to their ownership is one member wants to buy more. I guess the government could wave their right, but the government would love decreasing their share because it would look good to the voters.