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Automotive News is reporting that Fiat has paid $1.27 billion for an additional slice of Chrysler. The news follows a move by the Italian automaker last week that saw its total ownership jump to 30 percent. The newest acquisition increases that total to 46 percent, and analysts are predicting that the Pentastar's latest partner may make the jump for a majority stake sometime soon. Fiat's CEO, Sergio Marchionne, has already been quoted as saying that his company would like to eventually have control of the smallest of the Big Three. If that happens, it's assumed that Marchionne would immediately push for an IPO.
The last five percent of the puzzle hinges largely on the effective launch of a new 40-mpg vehicle slated to be unveiled later this year. Chrysler is also said to be on track to complete its debt refinancing by the end of the second quarter, which puts the American manufacturer closer to going public than it has been since bankruptcy.

Previously, the latest swell in Fiat ownership had come after the automaker met a number of goals, including ensuring that at least 90 percent of its South American dealerships sold a Chrysler product.

[Sources: The Detroit News, Automotive News – sub. req.]


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  • 11 Comments
      tagg8019
      • 3 Years Ago
      Fiat has done more with Chrysler in months than DaimlerBenz did in years. They may not be a public company yet or have all their product in order but I like the leadership a lot better than GM's seemingly constant state of flux.
      Hazdaz
      • 3 Years Ago
      THIS is how you buy an automaker, not the nonsense that tanked Chrysler to begin with when Diamler "merged" with them.
        guyverfanboy
        • 3 Years Ago
        @Hazdaz
        Amen to that! A true synergy between these two companies unlike the last two owners!
      ExoPlanet
      • 3 Years Ago
      I was watching an interview with Ralph Gilles and he basically said they were thankful VW was penetrating the NA market with diesels and can have diesel engines in all of their cars "at the flick of a switch" because of Fiat. Thats a pretty good card to have up your sleeve if you ask me.
      Alex Amici
      • 3 Years Ago
      A friend of mines showed is new red V10 Viper SRT yesterday, and we-are-in-Italy !
      ChrisH
      • 3 Years Ago
      Getting to wonder if Chrysler will be the survivor where everyone thought it would not be and instead we might see GM be the one in trouble
      Chris
      • 3 Years Ago
      Hey Sergio, better do some detailed studies of Hyundai and Kia for your 40 mpg car. You are going to have to bet them.
        billfrombuckhead
        • 3 Years Ago
        @Chris
        Not only will Sergio bet them he will beat the snot out of Korean Government Motors and all their ex VW people.
          • 3 Years Ago
          @billfrombuckhead
          [blocked]
        Rick C.
        • 3 Years Ago
        @Chris
        I think you have it backwards. Even Asian engineers admit when talking small cars, Fiat has always been the one to look at for packaging and propulsion schemes.
      • 3 Years Ago
      [blocked]