Italian car company Fiat is increasing their stake in Chrysler Group another 3.3%. Their ownership in the company will now be 65.2% after spending $198 million in additional equity.
Fiat first invested in Chrysler around two and a half years ago after Fiat acquired 20% in Chrysler. Chrysler was the first company to make a fuel-efficient I-4 engine in the U.S. and the company boosted their sales outside of North America. The company also engineered and produced a 40MPG car in the U.S. using Fiat’s platforms, known as the Dart Aero. Fiat ended up buying another 16% of Chrysler in May 2011 to 46% and they increased their stake to 58.5% by the end of 2011.
Fiat is purchasing the equity from the Chrysler Voluntary Employee Beneficiary Association (VEBA) controlled by the United Auto Workers. The UAW VEBA will be holding the remaining 35% of Chrysler.