Fiat SpA will increase its stake in Chrysler to 30 percent level within days, said Chief Executive Sergio Marchionne at a Jeep launch event in Turin on Monday.
“Within a few days Fiat’s share in Chrysler will climb to 30%.” ‘We are pretty well done’ in raising the Chrysler stake, Mr Marchionne said.
Asked about Chrysler’s performance, Mr Marchionne, who is also CEO of Chrysler, said: ‘I’m satisfied with what we have done in the first quarter. It’s totally in line with what we have told the market. Our cash position is strong.’ Marchionne said he was still confident Chrysler would confirm its US$2 billion (S$2.6 billion) target for operating profit this year.
Sergio Marchionne, CEO of both companies, is aimed to meet U.S. Treasury Department targets that would boost Fiat’s stake in Chrysler to 35%.
Then Fiat plans to exercise options to buy an additional 16%, giving it majority ownership this year before holding an initial public offering.
CEO Sergio Marchionne also told reporters on the margins of the event that Fiat had enough cash to purchase additional shares in Chrysler that would ultimately bring its stake to 51%.
Last week Marchionne said that the increase in Fiat’s stake in Chrysler to 30 percent from the current 25 percent would happen “within the next 30 to 60 days.”
The Italian automaker raised its stake to 25% in January after Chrysler began U.S. production of a Fiat derived small engine.