US sells remaining Chrysler stake to Fiat

Now Reading:

US sells remaining Chrysler stake to Fiat

Text size Aa Aa

The US Treasury Department has reached an agreement to sell its remaining six percent of shares in Chrysler to Italy’s Fiat.

Fiat is paying 386 million euros and will then have a majority 52 percent stake of the US carmaker.

It was rescued with billions in taxpayers’ money to save jobs. Washington has recovered all but 896 million euros of that bailout cash.

Treasury said that once the transaction is completed, it will have fully exited its investment in Chrysler.

Since the 2007-2009 financial crisis ended, the US government has been making every effort to sell off interests it acquired in industry as part of the rescue effort during those troubled years.

The deal was announced one day before President Barack Obama was due visit to a Chrysler plant in Ohio, where he is expected to tout the success of the bailout.

Chrysler filed for bankruptcy protection in 2009 after the credit crunch and recession pummelled vehicle sales. June 10 will mark the two-year anniversary of Chrysler’s emergence from bankruptcy under the management of Fiat.

As the two companies deepen their financial ties, they are also drawing closer together operationally. Earlier this year, Marchionne left open the possibility of a full merger of the two companies with a single headquarters.