Fiat poised to complete Chrysler takeover
Fiat is poised to complete its takeover of American giant Chrysler after helping to mastermind one of the 'most improbable turnarounds in recent history'.
The Italian company is set to increase its holding to 52 per cent as the US Treasury confirmed that it will sell its remaining stake in the manufacturer.
Chrysler was forced in bankruptcy in 2009, and had to be pumped with $12.5bn worth of government loans to remain afloat.
Since then, and with Fiat's guidance, the beleaguered firm has returned to health, posting profits of $116m for the first three months of this year.
Fiat has agreed to pay $500m for the taxpayers' remaining 6 per cent, and will also buy out an option on Chrysler's shares held by the United Auto Workers retiree trust for $75m.
The deal is expected to mean a $1.3bn loss for the US government, but Treasury Secretary Tim Geithner insisted the rescue plan had always been about preserving American jobs rather than making a profit.