Chrysler Group LLC may soon become a fully owned subsidiary of Fiat according to recent reports that show-Fiat has enough cash to buy the remaining stake of the US car maker. Currently, Fiat owns 58.5 percent of Chrysler while United Auto Workers or VEBA owns the other 41.5 percent. Sergio Merchionne the company’s CEO confirmed these reports saying that if they ever reach a deal with VEBA to buy the remaining stake, they have enough cash for it.
Sergio is relying on the Michigan-based Chrysler, where he’s also CEO to recover losses that the company made last year in Europe, the losses exceeded 700 million euros and so far what they have is good news, the company has had a profit rise of 1.6 percent which translates to 4.04 euros in March this year, they plan on getting to 4.5 billion euros in 2013 as profits up from 3.81 billion euros in 2012. The introduction of the Alfa Romeo 4C is expected to boost this sales especially in the US.
Sergio says the merging deal may be complete by June 2014 and this makes sense as he will mark his tenth year as CEO of Fiat, he has so far declined an offer from Germany- based Volkswagen AG who had interests in buying the Alfa Romeo brand saying they may sell a stake in the Magneti Marelli car-parts division but not Alfa Romeo neither Ferrari, he even emphasized that Ferrari is not for sale!