Fiat boosts its ownership stake in Chrysler to 30 percent

PanARMENIAN.Net - Fiat boosted its ownership stake in Chrysler Group LLC by 5 percent Tuesday, April 12, as the Italian automaker met several benchmarks set by the U.S. government.

The company now owns 30 percent of Chrysler, and it can raise ownership to 35 percent by making a 40 mpg car in the U.S., according to the Associated Press.

Fiat got a 20 percent stake in Chrysler when it took over management of the company after a government-funded bankruptcy in 2009, and the government set several benchmarks for Fiat to increase its stake. In exchange for the ownership stake, Chrysler got small-car and clean-engine technology and Fiat's management know-how.

Fiat's share of the company rose to 25 percent in January when it met the first government benchmark by making a fuel-efficient four-cylinder engine at a factory in Dundee, Mich.

The stake granted Tuesday came because Fiat boosted Chrysler's sales outside North America, compensated Chrysler for Fiat's use of its technology and recruited dealers in Europe and Brazil to sell Chrysler cars and trucks.

Plans for the 40 mpg car already are in the works, and Sergio Marchionne, CEO of both Fiat and Chrysler, hopes to increase Fiat's stake to 35 percent by the end of this year.