US Sells All Its Chrysler Stock to Fiat
The 6% stake will sell for $500 million
By Kevin Spak, Newser User
Posted Jun 3, 2011 8:54 AM CDT
Fiat cars are displayed at a retailer in Milan, Italy, Thursday, April 21, 2011.   (AP Photo/Luca Bruno)

(Newser) – The Treasury Department has reached a deal to sell its remaining 6% stake in Chrysler to Fiat for $500 million, making the Italian automaker Chrysler’s majority shareholder with a 52% stake, the Detroit Free Press reports. Fiat will then pay another $75 million for the government’s right to buy the United Auto Workers’ remaining stake in the company, $15 million of which will go to the government of Canada.

Fiat exercised a call option on the shares last Friday, giving the government until June 10 to agree to a sale price. Had they failed to reach an agreement, the price would have been set based on investment bank estimates. Tim Geithner touted the deal—and the auto bailout itself—as a success. “As Treasury exits its investment in Chrysler, it’s clear that President Obama’s decision to stand behind and restructure the company was the right one,” he said. The US government will ultimately lose around $1.3 billion in the deal.

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Showing 2 of 8 comments
beefydaddy
Jun 3, 2011 11:57 AM CDT
In the memorable words of CitizenX: If the republicans were in charge, GM & Chrysler would be dead and Osama bin Laden would be alive.
Jeffrey-Lebowski
Jun 3, 2011 9:18 AM CDT
“As Treasury exits its investment in Chrysler, it’s clear that President Obama’s decision to stand behind and restructure the company was the right one,” he said. The US government will ultimately lose around $1.3 billion in the deal." The right decision cost $1.3 billion?