Belfast Telegraph

Sunday 13 July 2014

US will sell stake in Chrysler

The US government is sell its stake in Chrysler Group for 500 million dollars (AP)

Chrysler Group will soon sever its ties with the US government.

Italian carmaker Fiat agreed to buy the US Treasury's 6% interest in Chrysler for 500 million US dollars (£305.9 million).

Once the deal closes, the government will no longer hold a stake in the company.

President Barack Obama is expected to announce the agreement today during a trip to a Chrysler facility in Toledo, Ohio.

Fiat also agreed to pay 75 million US dollars (£45.8 million) for the right to buy Chrysler shares held by a trust for retired carworkers.

The Treasury Department will receive 80% of those proceeds, or 60 million US dollars (£36.7 million), while the Canadian government will get 15 million US dollars (£9.1 million).

The deal will give Fiat a majority stake in the carmaker just two years after it agreed to manage Chrysler after its bankruptcy.

Latest News

Latest Sport

Latest Showbiz