Fiat’s merger with the Chrysler Group seems to be going well as the Italian company increased its overall stake in the Detroit automaker from 25 to 30 percent on Tuesday.
“The increase is the result of the Company’s achievement of the second of three performance-related milestones outlined in a recent amendment to its June 10 2009 Operating Agreement, which broadens the Chrysler Group-Fiat partnership and enhances Chrysler Group’s international market position,” Chrysler said in a press statement.
The milestone in question required Chrysler Group to achieve cumulative revenues of more than $1.5 billion (€1.04 billion) from sales made outside U.S., Canada and Mexico (NAFTA countries) after June 10 2009, plus Fiat agreeing to the three following conditions:
In order to further increase its Chrysler stake to 35 percent, Fiat must meet a third requirement, which states that it has to produce in the United States a 40 mpg car that would be based on a Fiat platform. The remaining 16 percent necessary for Fiat to control Chrysler will only be granted after a financial transaction.