Chrysler Is Now Officially Fiat Real Estate
Milan-based automaker Fiat SpA (FIATY.PK) announced on Tuesday that Chrysler Group is now “wholly owned” by it, closing the book on a deal that has been in the making for some time now. Fiat gained a controlling stake in Chrysler and its brands in 2009, as part of the American auto industry’s bailout arrangement. What wasn’t held by Fiat at the time was given to a retiree health care trust controlled by the United Auto Workers, and after months of negotiations, the UAW trust agreed to relinquish its position for $4.35 billion.
“We reached a successful conclusion that will benefit the trust’s retirees,” Robert Naftaly, chair of the committee that operates the trust, said in a statement. “This was always our goal. As a result, the Trust is stronger.”
The job isn’t over for Fiat, though. The firm has a meeting set for January 29 to determine how best to complete the merger of Fiat and Chrysler, where the combined company will be registered, what it will be called, and where its stock will be traded, the Detroit News reports.