DETROIT - Italian of automaker Fiat SpA Friday said that it the Treasury's remaining shares in Chrysler Group LLC, liberation of car manufactured by the U.S. Government property will buy.
The Turin, Italy-based company notified the US Treasury, that an option to the Government buy it 6 percent of the shares will exercise. The price is negotiated within 10 days, or by June 10.
If the sale were to occur, remains unclear. But Fiat moves quickly to a controlling stake in Chrysler, which it has company since the left bankruptcy protection in June 2009.
Chrysler has made a remarkable turnaround. The automaker was almost out of cash before the bankruptcy and needed $10.5 billion in U.S. Government money to survive. The company a first quarter net profit of $116 million and 2011 earnings of $ 200 million to 500 million forecast. The company has conducted by Fiat CEO Sergio Marchionne costs lower, and most of its lineup of Jeep, Chrysler, Dodge and RAM revived the sales of rehabilitation vehicles.
Purchase from the Government, 52 percent of Chrysler would be Fiat. This should increase before the end of the year to 57 percent as Chrysler begins production of a small car 17 KPL (40 mpg) in the United States
Fiat, a 20-percent stake in Chrysler received after the bankruptcy in exchange for management expertise and technology. The Italian automaker has gradually increased their share by meeting government specified benchmarks. Last week paid as buy it $1.3 billion more 16 percent of the company.
On Tuesday repaid Chrysler total $7.6 billion in loans from the U.S. and Canadian Governments of refinancing it through a combination of bank loans, bond sales and investment from Fiat.
With the loan, loan repayment has the Government yet to about $2 billion of the 10.5 billion $ recover in the bailout money. Fiat stock purchase will help some, but the Government has conceded that it will take all the money. Some who attended the old Chrysler, which was separated from the new in the opening of bankruptcy proceedings the money.
Fiat, it can more than 70 percent of Chrysler has options are part of the funds buy participation now instead of a United Auto workers retiree health care trust.
Friday's announcement was good news in Washington, where the bailouts of General Motors and Chrysler have criticised as interference in the free market.
"Not long ago, Chrysler, and hundreds of thousands of jobs disappear threatened," said U.S. Senator Debbie Stabenow, a Democrat of Michigan, in a statement. "Now Chrysler has returned to profitability, even more people keep busy than expected and is again a viable, independent company."
Gerald Meyers, Professor at the Stephen M. Ross School of business at the University of Michigan and former CEO of American Motors Corp., said could transform Marchionne Chrysler expected to much faster than anyone else. He is now getting control of a large company for relatively little money.
"It seems a steal to be now, but months nine ago, that it was a game of chance," said Meyers.
There are still some risks.
Chrysler now desperately small and medium-sized vehicles needed motors are competitive with those of Ford and General, said Meyers. Marchionne has come with the capital for new products at Fiat and Chrysler.
Meyers suggested that buying from the Government Fiat to escape Government imposed executive pay limits allows.
Friday's announcement caps great weekly for Chrysler and Fiat. And next week, to President Barack Obama on 3rd June to visit a jeep plant in Toledo, Ohio, loans, the Chrysler talk about the success of the Government saved.
Trade Union leaders in Chrysler's two Toledo works hope that the company will announce additional investment and new vehicles for at least one of the plants. Chrysler makes the Jeep Wrangler sport utility vehicles and the Jeep Liberty and Dodge Nitro now small SUVs in Toledo.
Union negotiations Chairman Dan Henneman says that leaders hope that post company, plans to build new versions of the liberty and Nitro, and perhaps a new compact or midsize SUV or car in the North Toledo plant.
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