In June Fiat CEO Sergio Marchionne indicated that his company might exercise a clause to purchase an additional 3.3 percent stake in Chrysler from the UAW's VEBA healthcare trust, but stopped short of confirming those plans. However, the Turin-based automaker announced in a statement earlier on Tuesday that it will indeed exercise that clause.
Per the terms of Chrysler's bankruptcy, Fiat has the option to purchase up to 3.3 percent of Chrysler from VEBA every six months through 2016. Fiat also has the option to purchase the remainder of Chrysler from VEBA - which will stand at 38.2 percent following today's announcement - for $4.25 billion. An outright purchase would also require Fiat to pay 9 percent annual interest dating back to January 2010, according to The Detroit News.
Marchionne has previously stated that he wants to fully merge Fiat with Chrysler, but a struggling European economy will ensure that doesn't happen during 2012.
