Fiat is one step closer to completing a merger with Chrysler after exercising an option to acquire an additional 3.3 percent of the Auburn Hills-based automaker today. Automotive News reports that Fiat now controls 68.49-percent of Chrysler, which is up almost 10 percent since we last heard news of this deal back in February when Fiat talking to various banks to raise more capital in order to complete the acquisition.

The article says that Fiat is still able to increase its stake in Chrysler up to 75 percent over the next 12 months, but it sounds like CEO Sergio Marchinonne would rather purchase the remaining shares from VEBA – the retiree benefits trust – sooner rather than later. Unfortunately, the two sides still seem far from an agreement on a fair price for the rest of Chrysler, as Fiat has them valued at $4.2 billion compared to the $10.3 billion estimate from the unions that currently own the remaining stake in Chrysler.


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  • 41 Comments
      marc.mitchell
      • 1 Year Ago
      Good news for Chrysler, not so good for Fiat. No support 4 Lancia.
      loopless
      • 1 Year Ago
      It's success or failure will be closely watched by the industry ... esp. Audi and Mercedes.
      • 1 Year Ago
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        • 1 Year Ago
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          NissanGTR
          • 1 Year Ago
          Chrysler needed Mercedes as much as they do with Fiat. Even though Mercedes screwed them over, Chrysler probably wouldnt be here today.
          Jesus!
          • 1 Year Ago
          GTR Chrysler was a profitable company before the Daimler Merger. No one needs Daimlers help.
          mchica
          • 1 Year Ago
          No, Chrysler was a failing entity before the Daimler merger. Having been thru one bankruptcy already, they were well on their way to their second. They had no credible compact (Neon was a crude, cheap offering that only had a 3 speed Auto and got poor mileage) nor midsize (Avenger and Sebring were slow selling rental fodder for the most part) that could take on the Asian Big 3 domination (CamCordAltima). Also remember Chrysler had zero precense in Europe which is where the merger with Daimler came from, to crack the European market.
      sinistro79
      • 1 Year Ago
      The only way that Chrysler could be conceivably worth the $10+ billion that the union is claiming its worth would be if Fiat owned the company outright and continued to interject innovation and aggressive pricing on its products for the foreseeable future. Without Fiat, Chrysler would be worthless.
        Jesus!
        • 1 Year Ago
        @sinistro79
        Fiat innovation? Lol Then why is Fiat doing so poorly? Chrysler invented cab forward design and the minivan so its more like Sergio wants Chryslers innovation expertise.
          dovegraybird
          • 1 Year Ago
          @Jesus!
          Actually you can thank AMC for cab forward design. Its not like Chrysler made it on the platform of the Dynasty/New Yorker
          S h a w n
          • 1 Year Ago
          @Jesus!
          LOL, you think Chrysler invented Cab Forward. OMG that's funny. LOL, you think Chrysler invented the minivan. Even funnier. I guess when some repeats something often enough, the kids believe it.
        • 1 Year Ago
        @sinistro79
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      Antonio
      • 1 Year Ago
      For the life of me, I don't know why FIAT wants anything to do with Chrysler or Dodge.
      misterbertram
      • 1 Year Ago
      A part of me hopes this takeover works out, I've always been one to root for the underdog, so naturally i like Chrysler. But another part of me hopes it fails miserably and both companies crumble, then i win the powerball lottery and buy the Chrysler name and start from scratch. Every car would have a hemi standard
      • 1 Year Ago
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      bayway48
      • 1 Year Ago
      Well so far, Fiat is doing wonders for Chrysler/Dodge/Ram! When the take over is complete, is Fiat going to give the same considerations to a future Chrysler/Dodge/Ram product? Or will any positive gains from this end up on the Fiat side of the fence? Me thinks that whatever a future Chrysler/Dodge/Ram has will be to the benefit of Fiat first. If Fiat isn't on top, Chrysler/Didge/Ram will be their firewall.
        A P
        • 1 Year Ago
        @bayway48
        If and when Fiat take full control, they have access to all of Chrysler's cash, and that means its cash will be stolen just like when MB (the filthy German dirtbag car company) took Chrysler over. There is nothing worse than a European auto exec.......except a desperate Italian one.
          Jesus!
          • 1 Year Ago
          @A P
          Sorry bloke but he is right on the Mercedes part. They are the reason Chrysler was in such bad shape. Before the merger, Chrysler was healthy and profitable. Now we have the nut job seperating Ram from Dodge, tarnishing Jeep with a nasty Cherokee, ruining the front of the Grand Cherokee, etc. He is on the path to destroying Chrysler. I hope and pray Fiat does not gain full control. Otherwise, Chrysler is in trouble all over again.
          aatbloke1967
          • 1 Year Ago
          @A P
          Give it a rest - there's nothing worse than a spotty American egotistical teenage idiot who knows nothing whatsoever about the wider world.
          aatbloke1967
          • 1 Year Ago
          @A P
          If Chrysler was healthy and profitable, its board of directors wouldn't have agreed to enter a merger in the first place. It produced dire rubbish which practically crumbled to the touch. Chrysler's board knew beforehand that the value of Daimler's shares far exceeded that of Chrysler, and consequently Chrysler's shares would be dissolved at a much lower price for conversion to DCX shares than those in Daimler. As a result, former Daimler shareholders and directorship yielded far more power than Chrysler executives evidently were capable of foreseeing So don't blame Daimler - blame Chrysler itself.
          • 1 Year Ago
          @A P
          [blocked]
          • 1 Year Ago
          @A P
          [blocked]
          • 1 Year Ago
          @A P
          [blocked]
          aatbloke1967
          • 1 Year Ago
          @A P
          Oh dear - Yonoclue and his infantile charm returns. Isn't it past your bedtime? Your parents will be annoyed I'm sure.
          aatbloke1967
          • 1 Year Ago
          @A P
          Yonoclue, you're beating your lethargic chest to an audience of precisely ... zero. Nobody cares what you have to say, not even your own countrymen (although your peers of the same 8-12 years old age range might, assuming they're as immature as you are, even by those pre-pubescent standards). Please, don't start bawling for God's sake.
          • 1 Year Ago
          @A P
          [blocked]
          aatbloke1967
          • 1 Year Ago
          @A P
          Replace "infants" and "teenagers" with "idiots" and you'll be far closer to the mark. Yonoclue, do bear in mind that this is a motoring enthusiasts forum, not a playground for neophytic teenage dreamers. You're bound to be bored, because this isn't a place where you'd be ostensibly entertained. But if you think you can find some Lego and behave yourself, then by all means stay if you can prove that you'll contain your insolence.
          aatbloke1967
          • 1 Year Ago
          @A P
          "I hope and pray Fiat does not gain full control. Otherwise, Chrysler is in trouble all over again." Chrysler gets into trouble all by itself. Without Fiat, it likely wouldn't exist today and certainly not in its current form.
          aatbloke1967
          • 1 Year Ago
          @A P
          Yonoclue ... this must be a charade for Autoblog. Has to be. Nobody could possibly be a stupid and ignorant as you portray yourself to be on here.
          nbcftgohah
          • 1 Year Ago
          @A P
          the Germans are masters of austerity with the backside of others
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