On Monday, Fiat announced they will be increasing ownership of Chrysler by 16% for a total 46% of the company. Once the auto manufacturers government loans have been paid, Fiat hopes to take a 51% majority stake in Chrysler as early as by the end of this year.

Sergio Marchionne, chief executive of both auto makers, says that this is an important step towards the integration of Fiat and Chrysler, started under two years ago. The result will be the creation of a global auto maker. They have chosen to speed up the pace to bring about the birth of a single group capable of international activities. Fiat outlined its plans after reaching an agreement with Chrysler’s shareholders, which include the U.S. Treasury Department, the United Auto Workers’ health trust fund and the Canadian government. The move shows that there is confidence in Chrysler turning around and becoming a profitable auto manufacturer. It does not mean Chrysler is fixed, it does show that Marchionne believes it is on track.

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