Fiat Now Majority Owner in Chrysler Group
WASHINGTON – The U.S. Department of the Treasury stated in a news release that it received $560 million in proceeds from the sale of its remaining stake in Chrysler Group LLC to Fiat. The U.S. Treasury has now fully exited its investment in Chrysler Group LLC. In addition, the Detroit News said Fiat now owns 55.3 percent of Chrysler (53.5 percent on a fully diluted basis).
Fiat had held a call option to purchase Treasury’s equity interest in Chrysler Group, which it had the option to exercise within the 12-month period following the repayment of a Treasury loan to Chrysler. With this repayment, Fiat is now the majority owner of Chrysler Group LLC.
Regarding the history of the Troubled Asset Relief Program (TARP) loans given to Chrysler, originally the Treasury gave Chrysler a total of $12.5 billion under the Automotive Industry Financing Program (AIFP), which was part of TARP. On May 24, 2011, Chrysler Group repaid $5.1 billion in TARP funds. Chrysler Group has repaid more than $11.2 billion of that amount with the most recent $560 million payment.
Sources: U.S. Department of the Treasury, The Detroit News