Fiat’s stake in Chrysler has increased from 20 per cent to 25 per cent, the firms have announced.
The news comes as Chrysler achieved the first of three performance-related milestones under Fiat ownership
As stated in its operating agreement in June 2009, Chrysler Group issued a commitment letter to the U.S. Treasury stating that the firm has received the appropriate governmental approvals to begin production of its Fully Integrated Robotised Engine (FIRE) in its Dundee, Michigan facility.
As a result, Fiat’s ownership interest increased automatically under the terms of the agreement.
The 1.4-litre MultiAir engine will be introduced first into the new Fiat 500 and the company will be looking to increase its share holding in the company to 35 per cent with the completion of Chrysler’s remaining performance targets, at a rate of five per cent per target reached.