Fiat has reportedly reached a deal to pay $500 million for the rest of the federal government's share of Chrysler, along with another $60 million for the government's option to buy most of the remaining shares of Chrysler stock. The purchase, which President Obama should officially announce today, will settle the remainder of Auburn Hills' debt to the government.

The federal government bailed the automaker out to the tune of $4 billion under the Bush administration, with the total eventually rising to $5.9 billion. Fiat's purchase will account for the last of the debt and once again put the company under foreign ownership.

With the deal, Fiat will gain a 52 percent stake in the company.


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  • 24 Comments
      D57H
      • 3 Years Ago
      Fiat/Sergio has been one of the best things to ever happen to Chrysler and as long as they keep doing what they have been I see no problem with this!
      ExoPlanet
      • 3 Years Ago
      Chrysler may as well be Italian owned, its now been two Italian CEO's that have made the Company prosper and expand. (Iacocca and now Marchionne). Cant wait to see the new 40 mpg Dodge compact coming out next year that was fully designed under the new management that rides on the new Fiat derived CUSW platform.
      guyverfanboy
      • 3 Years Ago
      Great news for Chrysler! I can't wait for all the cool stuff they will come out with. (Mostly I just want a diesel Durango).
      • 3 Years Ago
      [blocked]
        • 3 Years Ago
        [blocked]
        Talisman
        • 3 Years Ago
        And what exactly makes their commercials ghetto? An Urban environment? Hip hop beats? Use of celebrities? Because none of those are inherently ghetto. Whether you like them or not, their commercials are well done, memorable, and have a consistent theme. It's obvious you were never planning to buy a Chrysler vehicle anyway. You sound foolish.
          • 3 Years Ago
          @Talisman
          [blocked]
      rllama
      • 3 Years Ago
      Finance It Again, Tony ?
      coolbreezesd5555
      • 3 Years Ago
      I think this partnership might actually work. Good luck to Chrysler and Fiat. I do love my new Fiat 500 Sport :-)
      Carlos Cruz
      • 3 Years Ago
      Hopefully they move the design team to Italy. I cant wait to see Fiats in US dealerships
      amerifight
      • 3 Years Ago
      So we bailed them out so that they could be italian owned?
        mythicalprogrammer
        • 3 Years Ago
        @amerifight
        We bailed them out so that the American people wouldn't be out of a job. We got the money back though...better than those bank CEO with bonuses during the recession.
      LBJAY02
      • 3 Years Ago
      The Chrysler Coincidence: Bailout Loan-Shuffle To Help Fund Fiat Takeover http://www.thetruthaboutcars.com/2011/04/the-chrysler-coincidence-bailout-loan-shuffle-to-help-fund-fiat-takeover/ We're being conned again....
      cashsixeight
      • 3 Years Ago
      What could possibly go wrong? Chrysler + European Styling and tech sounds like a surefire win!
        Carlos Cruz
        • 3 Years Ago
        @cashsixeight
        Well, this has been done before, from 1998 to 2007 Chrysler was owned by Daimler AG, creating DaimlerChrysler. This did not create the big car company that the executives from Stuttgart, Germany had hoped for, so they sold Chrysler off to Cerberus Capital Management. CCM did not manage to turn the pentastar company around. Also, although some of the vehicles from Chrysler get the German treatment, this was not enough to make a difference, since the major differences were mostly hidden. Hopefully now the Italians push better design and technology to Chrysler.
          MintzBuck
          • 3 Years Ago
          @Carlos Cruz
          The DiamlerChrysler experiment was never really supposed to work. Chrysler was doing well on there own back then. Diamler just wanted Chrysler for their cash and to put part development cost onto without giving them anything back. Diamler never let Chrysler spend any money or do anything interesting either. A good example is the ME412. It used an AMG engine and would have been an amazing super car, but Mercedes would never let it happen.
        cashsixeight
        • 3 Years Ago
        @cashsixeight
        Carlos, that was sarcasm. Daimler fired everyone important at Chrysler, stole their technology, and left them to rot.
      sinistro79
      • 3 Years Ago
      The best thing about this is that the Chrysler dealer network will allow for Alfa Romeos to be sold in the USA again. Chrysler itself, has no identity anymore beyond being a stable product for car rental agencies like Avis, Hertz, and Enterprise. The only brand that has any positive recognition in the Chrysler portfolio is Jeep and Chrysler is still too incoherent to have V8 or diesel option for the Wrangler. Maybe Fiat will change that too now that more of the profit will be theirs...
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