US will sell stake in Chrysler
Published 03/06/2011 | 05:02
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.