Deal gives Fiat 100% ownership of Chrysler

  • 02-Jan-2014 10:02 EST
MarchionneDec2010.jpg

Commented Fiat CEO and Chrysler Chairman and CEO Sergio Marchionne on the deal: “The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective, and know-how—a solid and open organization that will ensure all employees a challenging and rewarding environment.”

Fiat S.p.A. on Jan. 1 announced an agreement under which its wholly owned subsidiary Fiat North America LLC will acquire 100% ownership of Chrysler Group LLC by month’s end. Fiat currently own 58.5% and will buy the remaining 41.5% for $3.65 billion from VEBA Trust (a Voluntary Employees’ Beneficiary Association trust administered independently to pay health care benefits to Chrysler retirees). In a related move, Chrysler Group and the UAW (International Union, United Automobile, Aerospace and Agricultural Implement Workers of America) have agreed to a memorandum of understanding under Chrysler Group’s existing collective bargaining agreements to provide for additional contributions totaling $700 million by Chrysler Group to the VEBA Trust. For its part, the UAW will agree to certain commitments to continue to support the industrial operations at Chrysler Group and the further implementation of the Fiat- Chrysler alliance, including to use best efforts to cooperate in the continued roll-out of Fiat-Chrysler World Class Manufacturing (WCM) programs, actively participate in benchmarking efforts associated with implementation of these programs across all of Fiat-Chrysler manufacturing sites to ensure objective performance assessments and provide for proper application of WCM principles, and actively assist in the achievement of the Group’s long-term business plan. “The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective, and know-how—a solid and open organization that will ensure all employees a challenging and rewarding environment,” said Fiat CEO and Chrysler Chairman and CEO Sergio Marchionne in a statement.

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