Fiat has raised its stake in Chrysler by five per cent to 58.5 per cent. The move has happened because a clause in the operating agreement that is in place between the two car companies has been fulfilled.
The clause was known as the ‘Ecological Event’ and to achieve it Chrysler was required to receive US regulatory approval for an automobile based on a Fiat platform or vehicle technology having a fuel efficiency rating of at least 40mpg (combined). It also had to commit to put the vehicle into production in the US.
The target was reached in December with a pre-production version of the Dodge Dart, based upon Fiat architecture technology. The production Dart was unveiled at today’s Detroit motor show.
“The acquisition of a further five per cent of Chrysler is a fundamental step in completion of the integration between our two groups, ” said Sergio Marchionne, boss of Fiat and Chrysler Group.
“We have worked hard on achievement of the Ecological Event over the past two and a half years and we are particularly proud of this accomplishment because it represents repayment of the trust placed in Fiat to introduce its fuel-efficient cars and engines to the US market.
“The commitment to ecological and sustainable mobility, which has made Fiat the most eco-performing automaker in Europe, is integral to our business strategy. Together with the know-how developed by Chrysler, we have formed a strong, competitive auto group with a technological capability among the most innovative in the world.”
Fiat has been steadily increasing its possession of Chrysler. The remaining 41.5 per cent of Chrysler is owned by VEBA, which is a trust fund of the United Auto Workers union.