Fiat pays €500m for Chrysler stake

Washington: Fiat will pay $500 million (€346.7m) for the US government’s remaining 6% stake in Chrysler, ending the Treasury’s involvement in the car firm as Fiat moves to consolidate control.

The US Treasury said it will receive an additional $60m (€41m) as part of a deal for Fiat to acquire the government’s rights to buy a union trust fund’s stake in Chrysler. The Canadian government will get $15m (€10.2m) from that part of the transaction, the Treasury said in a statement.

The purchase of the US stake will take Fiat’s holding in the Auburn Hills, Michigan-based car maker to 52%. Chief executive Sergio Marchionne expects to get an additional 5% stake in the fourth quarter.