The Fiat-Chrysler merger has been one of the most successful in the history of automotive; so much so that the Italian giant decided to increase their share in the American firm from 59 to 100 percent. And it’s finally happening, as Fiat has reportedly reached an agreement with UAW (United Auto Workers) VEBA Trust to purchase the remaining 41 per cent of Chrysler shares still in their possession.
Based on this agreement, Fiat will pay UAW a total of $4.35 billion for their Chrysler stakes. Fiat will pay $3.65 billion up front, while the remaining $700 million will be paid by Chrysler in four $175 million chunks to be paid annually over the next four years.
The transaction, which is expected to be completed by January 20, also requires UAW to continue to support Chrysler’s production, although details of it have not yet been revealed. Fiat’s full control over Chrysler’s operations in America could pave the way so finally they can bring back Alfa Romeo to the States, and boost Fiat and Maserati sales as well.
“The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment,” Said Fiat and Chrysler CEO Sergio Marchionne. “In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments.”