/Official: Fiat Completes Chrysler Takeover

Official: Fiat Completes Chrysler Takeover

fiat chrysler 600x258 at Official: Fiat Completes Chrysler Takeover

Following the first reports earlier this month, Italian car maker Fiat confirmed today that they have completed the acquisition of Chrysler Group through their North American division in a 4.34 Billion USD deal. Chrysler Group is now a wholly-owned subsidiary of Fiat.

To acquire the remaining 41.46 percent stake in Chrysler they didn’t own, Fiat paid UAW’s VEBA trust a down payment of $1,750 million from available cash on hand. Under the memorandum of understanding, Chrysler Group will provide additional contributions to the VEBA Trust of an aggregate of $700 million in four equal annual installments.

Fiat’s takeover of the entire Chrysler operation will invariably entail a series of changes in the way the car maker does business. But it is not likely to have a big effect on the production – at least not in the near future.

Chrysler does not have a fond memory of mergers and acquisitions, since their marriage with Daimler turned bad and they split on bad terms. Fiat seems like they know what they’re doing. They did a good job of revitalizing the brand when they owned only half of it. They should be able to work wonders with it all.

(Founder / Chief Editor / Journalist) – Arman is the original founder of Motorward.com, which he kept until August 2009. Currently Arman is our chief editor and is held responsible for a large part of the news we publish.