Fiat Looking To Increase Ownership Stake In Chrysler
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DETROIT (WWJ) – Fiat looking to grab a bigger slice of the Chrysler pie.
Fiat is preparing to raise its ownership stake in Chrysler from its current 30% to 46%, spending 1.3 billion dollars in order to increase its interest in Chrysler.
The Italian automaker says it will make the move once Chrysler repays government loans, hopefully by the end of June.
Analyst Mike Robinet with IHS Automotive sees this as a move by Fiat CEO Sergio Marchionne to nudge aside other large minority owner to give Fiat an opportunity to run Chrysler without interference.
Fiat expects to gain another five percent share by the end of the year, giving it majority ownership of Chrysler.