The announcement of Fiat’s purchase of all Chrysler shares has stirred the public. Elkann: "I have been waiting for this day since 2009"
The Italian concern Fiat has gained full control over the American automaker Chrysler. This event caused a lot of controversy, but Fiat CEO Sergio Marchionne is right in saying that it will go down in history. Like the president of the group, John Elkann, the grandson of that same Giovanni Agnelli, Jr., the Italian financial tycoon and patriarch of Fiat. It is planned that until January 20 the transaction will be completely closed, and then the signed agreement will bring Italian industry to a new level. And new doors will open not only in front of Fiat, but in front of the whole country.
It should be noted that a significant part of the shares and the management of the Chrysler concern has been owned by Fiat since 2009. And now the Italians are buying out only 41.6% of the assets remaining from the VEBA pension fund of the American automobile industry, worth $ 3.65 billion (2.7 billion Euro). Of this amount, Fiat will pay 1.75 billion in cash, and the remaining 1.9 billion will be the contribution of Chrysler itself. In addition, Chrysler will pay VEBA another 700 million dollars. All payments are divided into 4 equal shares, which will be made annually. At the same time, Fiat announced that it would pay its part out of its own funds and would not increase fixed capital, thereby calming the financial market.
The exchange has already reacted to the signing of the agreement: Lingotto shares (the Turin area where the Fiat plant is located) grew by 16.4%. Fiat now owns 100% of Detroit’s car home, making it the world's seventh Global Insight.
And Elkann’s satisfaction is understandable: “I waited for this day from the first moment when in 2009 we were chosen to help rebuild the Chrysler,” comments Fiat President. “Hard work and striving to achieve more in the past four and a half years have led to incredible results. I want seize the moment and officially greet all Chrysler employees in a new reality, which will be the fruit of mutual cooperation between Fiat and Chrysler. "
His enthusiasm is shared by Marchionne. He marks the tenth year of his administration of Lingotto with the project of creating a single concern of Turin and Detroit. "The acquisition of a 100% stake in Chrysler," says Fiat's CEO and president and CEO of Chrysler, "will allow us to gradually organize global car production based on the unique baggage of knowledge and experience of the two automobile giants."
