Skip to main content
  1. Leisure
  2. Autos & Motorcycles
  3. Auto Reviews

Fiat finally set to take full control of Chrysler Group LLC

See also

Fiat is now poised to take over complete control of Chrysler Group LLC after finally reaching a deal to purchase the remaining 41.5% from the United Auto Workers trust putting an end to a bitter battle between the two entities.

The trust, part of the Voluntary Employment Beneficiary Association or VEBA created nearly 7 yesrs ago manages healthcare for Chrysler’s 117,000 retirees over the value of Chrysler stock. Under the agreement, Chrysler will use $2.6 billion of its own funds, while Fuiat will finance $1.75 billlion for the buyout. If all goes well, the deal is expected to close on June 20th.

Fiat CEO Sergio Marchione has been seeking to merge the two automakers since 2009, after his company helped bail-out Chrysler, which had filed for Chapter 11 bankruptcy. However, VEBA had continually rejected all offers as being “too low,” until now, when it found it necessary to covert its share to cash to pay for the crippling cost of healthcare for Chrysler’s 117,000 retired union employees.

The original trust was founded by the UAW (along with all 7 Detroit auto manufacturer) back in 2007 as a means of alleviating the burden of paying for retiree medical care, years before healthcare costs began to rapidly outstrip the general rate of inflation.

News of the deal sent Fiat stock soaring by 15% yesterday, and has given the company hope that it will now be able to increase its own brand name sales here in the US.

Advertisement

Leisure

  • Corned beef
    Find out how to prepare a classic corned beef recipe in a slow cooker
    Video
    Slow Cooker Tips
  • Left handed eating
    Find out why you should never eat with your left hand
    Video
    Wives Tale
  • Subway message
    Subway customer finds 'Big Mama' written on her order
    Video
    Subway Message
  • Deviled eggs
    This is the only deviled egg recipe you’ll need this Easter
    Delicious Eggs
  • Natural solutions
    Natural beauty: All natural solutions to life's little beauty headaches
    Camera
    Natural Solutions
  • Chocolate souffle
    Love chocolate? Get tips on making the perfect chocolate souffle every time
    Video
    Recipe 101

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!