Fiat on the verge of Chrysler takeover



Fiat is poised to take over the heavyweight US car manufacturer by the end of this year as it bought another 16 percent stake worth $1.27bn from the US government.

Chrysler went bust 2009 as the worldwide recession started to bite and the US government was forced to intervene and take over the once-great manufacturer.
A merger with Mercedes owner Daimler AG in 1998 didn't lead to success for either company, and they split in 2007 with Chrysler being bought by a private equity firm in the US.

Fiat was brought onboard by the US government as a partner in the restructuring of Chrysler as efforts were made to restore it to solubility.

The Italian firm has always made clear its desire to control the company outright, but its latest moves have surprised commentators as taking another five percent stake this year would put Fiat 12 months ahead of its takeover schedule.

Fiat CEO, Sergio Marchionne, said: "This is a fundamental step toward completion of the momentous integration of Fiat and Chrysler, initiated less than 2 years ago, that will result in the creation of a global automaker."

Fiat's purchase of the final five percent of shares it needs will be subject to Chrysler's final repayment of loan money to the US and Canadian governments.
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