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

Fiat reaches deal to buy Chrysler

See also

Fiat has reached a deal with the UAW's retiree trust to buy the remaining shares of Chrysler. The agreement ends a high-stakes game of chicken, that would have forced Chrysler to issue an IPO that Fiat was trying to avoid. Fiat will pay the trust $4.35 billion.

In an email to employees, Fiat Chairman John Elkann and CEO Sergio Marchionne hailed the agreement, calling it "a historic day" for both companies.

Fiat now owns 58.5 percent of Chrysler and the UAW's Voluntary Employee Beneficiary Association or VEBA owns 41.5 percent. Marchionne has been trying to buy the trust fund's portion for years but they have not been able to agree on a price until now. The VEBA had threatened to force the IPO, to drive up the value of its shares.

The VEBA provides health care benefits for 117,000 retired Chrysler workers and their families. VEBAs were formed for all three Detroit automakers back in 2007, as a way to try and contain health care costs. During the bailouts, the VEBAs were given shares of both General Motors and Chrysler, in exchange for concessions.

The deal will give Fiat total control of Chrysler. Fiat-Chrysler repaid nearly $8 billion dollars in loans to the U.S. and Canadian governments. The Treasury department still lost more than $1billion on the Chrysler bailout.



  • Corned beef
    Find out how to prepare a classic corned beef recipe in a slow cooker
    Slow Cooker Tips
  • Left handed eating
    Find out why you should never eat with your left hand
    Wives Tale
  • Subway message
    Subway customer finds 'Big Mama' written on her order
    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
    Natural Solutions
  • Chocolate souffle
    Love chocolate? Get tips on making the perfect chocolate souffle every time
    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 and apply today!