Fiat takes control of Chrysler

Jun 11 2009 by Graeme Brown, Birmingham Post

Italian car-maker Fiat has taken control of Chrysler to create a growing global player following one of the worst crises in the history of the United States automotive industry.

Fiat chief executive Sergio Marchionne will take control of the new company, which will begin operating immediately.The company is not paying any money for its 20 per cent of the new firm but will contribute technology to make smaller Chryslers. In a memo to employees, Mr Marchionne said: “There is no doubt in my mind that we will get the job done.”

He added that Fiat would begin the process of transferring Fiat’s technology, platforms and powertrains to Chrysler plants in the next few months.

Fiat is joined by a union-aligned trust and the US and Canadian governments in taking over the best parts of Chrysler. The deal was completed after the US Supreme Court dismissed an appeal against it from three Indiana state pension and construction funds. The deal paves the way for Chrysler to emerge from bankruptcy protection.