Chrysler No Longer An American Company
Thats right, the iconic American car company and maker of such legendary vehicles like the Jeep is now an Italian company.
It was bought Fiat for $3.65 billion which paid for just over 41% of the company. Fiat already owned additional equity in the company.
This is quite a blow. Especially because the Jeep is such a symbol of America and our military!
U.S. automaker Chrysler will become fully owned by Italy’s Fiat under terms of an agreement announced Wednesday that also involves the United Auto Workers union.
The agreement comes more than 4-1/2 years after the Obama administration brought Fiat in to keep Chrysler in business as part of a packaged bankruptcy proceeding.
In a statement, Fiat said it has agreed to pay $3.65 billion for the 41.46% of Chrysler it doesn’t already own from the UAW’s medical benefits trust for retirees.
Fiat shares gained nearly 13% in Milan early Thursday to trade at €6.70, their highest level since July 2011.
In addition to the deal, Chrysler will contribute $700 million to the benefits trust over a 4-year period. For its part, the UAW has agreed to support the automaker’s plans to roll out vehicles and will drop a Delaware court proceeding over options exercised by Fiat in the acquisition of Chrysler.