Fiat Boss: We Want Control Of Chrysler

CEO Sergio Marchionne hints that Fiat could take 51 per cent stake in US car maker

By Riggers / Tuesday, 4 January 2011 / Loading comments

Fiat CEO Sergio Marchionne has strongly hinted that the company wants to take a controlling stake in Chrysler this year.

Marchionne made the comments to reporters yesterday at the Milan stock exchange, when Fiat Industrial - recently spun-off from the group's automotive interests - made its first official listing.

"I think it is possible, don't know whether it is likely, but it is possible that we go over the 50 per cent if Chrysler decides to go to the market in 2011," said Marchionne. "There will be an advantage if that happens."

Fiat saved Chrysler from bankruptcy in 2009 by acquiring a 20 per cent stake in the American car maker. The Italian giant now has the option of purchasing another 15 per cent of the company when Chrysler begins building a small engine in the US, plus an additional 16 per cent once Chrysler has repaid government loans from the US and Canada.

This would potentially give Fiat 51 per cent of Chrysler, and exercising its options before Chrysler offers its shares publicly would be a move that analysts reckon could save Fiat up to £1.7bn.

But even if Fiat does take official control of Chrysler - it won't fully meld the two car companies. "A legal merger is not going to change our life," said Marchionne.

^{Pic: Dgtmedia - Simone}