Fiat Officially Closes Deal With Chrysler

Fiat has officially closed the deal and taken over Chrysler this morning. The takeover now means that Fiat’s Chief Executive Sergio Marchionne will become CEO of Chrysler.

Fiat is now going to start transferring Fiat’s technology, platforms and powertrains to Chrysler plants. Chrysler’s plants are also going to resume production soon, since they were idled during the bankruptcy process and cost the automaker up to $100 million a day.

“We intend to build on Chrysler’s culture of innovation and Fiat’s complementary technology and expertise to expand Chrysler’s product portfolio both in North America and overseas,” Marchionne said.

“This morning’s closing represents a proud moment in Chrysler’s storied history,” said the U.S. Treasury Department. “The Chrysler-Fiat Alliance has now exited the bankruptcy process and is poised to emerge as a competitive, viable automaker.”

Fiat currently owns a 20 percent stake in Chrysler, which will eventually be increased to 35 percent, but Fiat cannot gain majority control until all taxpayer funds are repaid.

Full Story: Reuters