Fiat could own 70 pct of Chrysler by next year

AP News
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Posted: May 09, 2011 5:58 PM
Fiat could own 70 pct of Chrysler by next year

Italian automaker Fiat SpA could own more than 70 percent of Chrysler Group within a year once it repays its government loans and exercises other options.

Chrysler spelled out the terms of Fiat's ownership in a filing Monday with the U.S. Securities and Exchange Commission.

Fiat announced last month that it would pay $1.3 billion to increase its stake in Chrysler to 46 percent. Fiat expects to have a 51-percent stake by the end of this year, which would allow it to appoint a majority to Chrysler's board.

In the filing, Chrysler said Fiat also may acquire the U.S. government's 8.6-percent stake in a 12-month period following the repayment of government loans. Chrysler is expected to repay those loans in the second quarter.