Fiat SpA will be increasing its share holdings of Chrysler and will buy the remaining stake in Chrysler after Chrysler sells its U.S. held stake. After the deal, Fiat will own 57 percent of Chrysler. Fiat's recent acquisition of Chrysler has resulted in major strides in turning around the company with a number of quality new models being released. Other quality domestic models can be purchased at a Tysons Corner Chevrolet dealership. Both Chrysler and GM have had success after emerging from bankruptcy, and GM's latest Chevy models can be purchased from a Canton Chevrolet Dealer. Chrysler and GM had to declare bankruptcy but Ford did not end up declaring bankruptcy and Ford's latest models can be purchased from Ford Dealers GA.
Fiat is looking to consolidate Chrysler and Fiat notified the U.S. Treasurey of its intent to purchase the U.S. government's 6.6 percent stake in Chrysler. Fiat is moving faster to claim this share of Chrysler than most people had anticipated and Chrysler is making strong strides to improve its credit rating, similar to steps GM has taken. Chrysler may hold an IPO as well in the next few months to raise even more capital to reduce debts. Fiat and Chrysler have not yet merged but at some point it looks like the companies will merge.
Fiat increased its Chrysler holdings to 46 percent after Chrysler repaid $7.6 billion of U.S. and Canadian government loans. The loans had higher interest rates than the loans that Chrysler used to pay them off, and the result is that Chrysler's credit rating may improve. A UAW trust currently owns 45.7 percent of Chrysler which is down from 59.2 percent. Fiat will gain an additional 5 percent in the fourth quarter of 2011 and in exchange it will develop a fuel efficient vehicle for Chrysler. Shares will be negotiated between Fiat and the U.S. Treasury department, and an agreement should be reached within 10 days of the notice, otherwise an investment bank will decide.
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