Fiat’s influence over the Chrysler Group is expected to expand after it increased its ownership interest from 20 per cent to 25 per cent.
The increase is based on Chrysler achieving the first of three performance-related milestones. It was outlined in the operating agreement established on June 10, 2009, that Chrysler had issued an irrevocable commitment letter to the US Treasury stating it had received the appropriate governmental approvals and would begin commercial production of its Fully Integrated Robotized Engine (FIRE) at its Dundee, Michigan, facility.
The first application of the FIRE Engine will be in the new Fiat 500.
Under the terms of the agreement, Fiat’s ownership interest has increased. UAW VEBA still holds the largest share at 63.5 per cent; with Fiat at 25 per cent; the US Treasury at 9.2 per cent; and the Canadian Governments at 2.3 per cent.
Fiat could further increase its share to 35 per cent in five per cent increments with two additional milestones – the first relating to revenue and sales outside the NAFTA region, and the second to commercial production in the US of a 40mpg petrol vehicle based on Fiat platform technology.
