Fiat completes Chrysler Group takeover

Remaining Chrysler equity interests to be acquired by Fiat USA

Fiat has today confirmed it is acquiring the remaining part of the Chrysler Group not under its control. The 41.4616 per cent currently owned by the Voluntary Employees' Beneficiary Association (VEBA) Trust is expected to be signed across on or before the 20th January.

The deal is worth $3.65 billion (£2.21 billion), a figure comprised of $1.9 billion (£1.15 billion) in a 'special distribution payable by Chrysler Group to its members' and $1.75 billion (£1.06 billion) 'in cash purchase consideration' to the VEBA Trust.

John Elkann, Fiat Chairman, said of the deal: "I have been looking forward to this day from the very moment that we were chosen to assist in the rebuilding of a vibrant Chrysler back in 2009. The work, commitment and achievement I have witnessed... is exceptional, and I take this opportunity to officially welcome each and every one of the people in the Chrysler organisation to the integrated Fiat-Chrysler world".

Sergio Marchionne added: "I will be forever grateful to the leadership team for the support and unwavering dedication shown to the integration project that today has taken its final shape. The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how."

So what does this mean for the future of Fiat and Chrysler? Of course there has already been plentiful part sharing and badge swapping between the two (Lancia/Chrysler Ypsilon anyone?) so expect that to continue with even closer integration now. With the whole Chrysler brand under Fiat, could one entirely new global model be in prospect with different badges?

View the full Fiat press release here

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rijmij99

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