Fiat takes complete ownership of Chrysler

Fiat takes complete ownership of Chrysler image

Text: / Photos: | posted January 22, 2014 17:03

Chrysler Group is now a fully-owned subsidiary of Fiat

Following an agreement made early this month between Fiat and the United Auto Worker's union (UAW), the Italian automaker completes its acquisition of Chrysler Group by purchasing the remaining 41.46% stake held by the the UAW’s retiree fund called VEBA. Under the Chrysler Group umbrella are the Chrysler, Jeep and Dodge brands.

As agreed upon, the signed memorandum of agreement sees Fiat paying UAW $1.75 billion from its own pockets with Chyrsler paying $1.9B; making it a total of $3.65 billion up-front for the union. A remaining $700 million in 'contributions to the trust' will be split into four annual installments of $175 million once the merger has been completed; the first installment was paid to the trust upon completion of the agreement.

As part of the transactions the FNA and the VEBA Trust will dismiss with prejudice the proceedings before the Delaware Court of Chancery with respect to the interpretation of the call option agreement.