Fiat, U.S. Set Chrysler Deal; Auto Maker's Purchase of Stake Includes Option to Buy UAW Trust Shares
Italian auto maker Fiat SpA has an agreement to buy the U.S. Treasury's remaining 6% stake in Chrysler Group LLC, a move that would bring an end to the U.S. government's involvement in the Auburn Hills, Mich., auto maker.</br></br>Fiat will pay the Treasury $500 million for its 98,461 shares of Chrysler and another $75 million for the right to purchase all of the 45.7% stake owned by the United Auto Workers union's health-care trust fund.</br></br>The Treasury will retain 80% of the $75 million purchase right and share the remaining 20% with the Canadian government. In all, the Treasury will walk away with a total of $560 million in the deal, which is expected to close within the next 30 to 60 days following antitrust reviews.</br></br>President Barack Obama is expected to announce the deal during a planned visit Friday to a Chrysler automobile assembly plant in Toledo, Ohio.</br></br>"As Treasury exits its investment in Chrysler, it's clear that President Obama's decision to stand behind and restructure this company was the right one," Treasury Secretary Tim Geithner said in a statement Thursday. "Today, America's automakers are mounting one of the most improbable turnarounds in recent history--creating new jobs and making new investments in communities across our country."