Fiat just upped its stake in Michigan’s Chrysler Group to 30 percent earlier this week, but now the Italian automaker has announced its next goal: To acquire nearly half of the American brand by June.
Chrysler would need to repay $7 billion worth of government debt to the United States and Canada before Fiat could increase its share in the automaker. Fiat CEO Sergio Marchionne reportedly told company insiders that Chrysler is making progress and that the automaker is in advanced talks with banks about refinancing its government debt.
“This is the real goal Sergio Marchionne is working at,” a source told Italy’s Corriere della Sera newspaper. “He wants to do it by June. He might be able to do it a bit earlier.”
Fiat’s eventual goal is to acquire 51 percent of Chrysler, but that last five percent will be unobtainable until the Italian automaker helps its Michigan subsidiary produce in the United States a vehicle capable of 40 mpg.
References
1.’Fiat targets 46…’ view
