Fiat Trying to Buy Back Chrysler to Enhance Business Expansion

16219677871941211088 Fiat Trying to Buy Back Chrysler to Enhance Business Expansion

Sergio Marchionne is the CEO of Fiat-Chrysler Group and he has ventilated his future plans about the purchase of shares from Chrysler. Italian auto maker has revealed its future vision. Fiat has snatched 6 percent stakes by paying $500 million to buy Chrysler. After transaction, the company will be in comfortable condition to form the management board for supervising the team of workers to produce the aerodynamic vehicle at workshops. Chrysler was running through a crisis due to financial stringency. Now, this company has taken drastic steps to handover few shares/stakes to Fiat for overtaking financial stringency.

Marchionne the CEO of Fiat-Chrysler has finally told reporters that his intention is to enjoy the full ownership of the company (Chrysler). On the other hand, Max who is believed to be the senior analyst and critic at Bernstein Research located in London has made an official declaration in which he has told specifically that Fiat is trying to buy back the whole company for ensuring rapid growth and expansion of the company.

However, many critics and researchers thought earlier that Chrysler would be able to make a brilliant IPO but in the long run their performance was not up to the mark. Chrysler was merged in debt and to keep the company float well, the management group had to take drastic steps to sell 6 percent stakes to Fiat.

According to researchers by the end of 2011, Fiat is straining every nerve to hold 57 percent shares after coming to a financial settlement. It is the decision of Fiat management to buy additional 5 percent stakes. United Auto Workers’ Voluntary Employee Beneficiary Association (VEBA) is in possession of 41.5 percent shares of Chrysler and another 1.5 % is possessed by Canadian government. Now Fiat is doing massive plan and program to finalize the deal so that it can hold the Chrysler in its grip tight.

–Kreation Guru

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