Chrysler Group LLC Meets Second of Three Performance Events; Fiat Increases Ownership to 30 Percent
Chrysler Group LLC today announced that Fiat's ownership interest in the Company has increased from 25 percent to 30 percent, effective today. 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.
The second milestone required Chrysler Group to achieve cumulative revenues of more than $1.5 billion attributable to Company sales made outside of Canada, Mexico and the United States (the “NAFTA Countries”) after June 10, 2009, and to enter into the following with Fiat or its affiliates:
* an agreement covering at least 90 percent of Fiat dealers in Brazil for the distribution of one or more Company products (including Chrysler Group products rebadged and sold under the brand names of Fiat Group Automobiles);
* an agreement covering at least 90 percent of Fiat dealers in the European Union (EU) for the distribution of one or more Company products (including Chrysler Group products rebadged and sold under the brand names of Fiat Group Automobiles), and providing for the pooling of Chrysler Group and Fiat vehicle fleets in the EU for CO2 emissions ratings; and,
* an agreement providing for compensation to the Company for the use of its technology by Fiat or its affiliates outside of the NAFTA countries.
The ownership interests of Chrysler Group’s members are now:
UAW VEBA
59.2 percent UAW VEBA
30.0 percent Fiat
8.6 percent US Treasury
2.2 percent Canadian Governments
Chrysler Group reached the first performance event in January 2011 with the United States production of the fuel efficient Fully Integrated Robotized Engine (FIRE) in Dundee, Mich., thereby increasing Fiat’s ownership from 20 to 25 percent. Fiat has the opportunity to further increase its ownership in Chrysler Group to 35 percent through an additional performance-related milestone relating to commercial production in the United States of a 40-mile-per-gallon vehicle based on Fiat platform technology.
