Filed under: Government/Legal, Chrysler, Earnings/Financials, UAW/Unions
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How important is the forthcoming 2013 Dodge Dartto the future of Chrysler? Well, it allowed Fiat to boost its stake in Chrysler for the fifth time in the past year today, adding five percent to bring Fiat’s total ownership to 58.5 percent.
That’s because the new Dodge sedan scored a combined 40 miles per gallon in CAFE fuel economy testing, triggering the increase in ownership under the operating agreement reached following the Chrysler bankruptcy proceedings. (Note that the 40 mpg number is unadjusted, meaning that the actual EPA combined fuel economy, the one published on the window sticker, will be lower.) Chrysler sent the United States Treasury a letter stating that it was “irrevocably committed to begin assembly” of the Dart at its Belvidere plant in Illinois. Chrysler will take the wraps off the Dart on January 9 at the Detroit Auto Show.
Fiat’s stake in Chrysler has grown considerably since it received its initial 20-percent share in the immediate aftermath of the automaker’s bankruptcy. The Italian automaker has now met all the “performance events” of its agreement with the Treasury, and could buy out the United Auto Workers healthcare trust that owns the remaining 41.5 percent of the company, according to a report in Automotive News. However, that report indicates that Fiat’s financial situation may not be solid enough to do so - at least not right away.
To read Chrysler’s full press release, click through to the jump.Continue reading Fiat increases Chrysler stake to 58.5%
Fiat increases Chrysler stake to 58.5% originally appeared on Autoblog on Thu, 05 Jan 2012 16:29:00 EST. Please see our terms for use of feeds.
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