Fiat buys remaining 1.7 per cent stake in automaker for US$140 million
July 22, 2011
by The Canadian Press
OTTAWA—Fiat has purchased the remaining stake in automaker Chrysler by the federal and Ontario governments for US$140 million.
The sale is the final repayment of Canadian government loans to Chrysler two years ago when the Detroit company was granted $1.7-billion in bailout money after the global economic crisis decimated the North American auto sector.
The two Canadian governments received about a 1.7 per cent stake in Chrysler when they initially made the loans, as part of a wider bailout led by the U.S. government.
The help for Chrysler saved the company’s Canadian operations from collapse.
The Canadian government gets $125 million for its stake, plus an additional $15 million from an agreement between the U.S. Treasury Department and the UAW Retiree Medical Benefits Trust.
Ontario will get about $47 million for its contribution to the Chrysler bailout.
Windsor-based Chrysler Canada employs more than 8,000 people and has assembly plants in Windsor and Brampton.