Sergio Marchionne has his sights set on Chrysler now that Fiat’s demerger is complete Fiat could take a majority stake in US carmaker Chrysler, according to the Italian company’s chief executive.
Fiat already owns 20% of Chrysler, and Sergio Marchionne said strengthening the alliance was a priority.
His comments came as Fiat demerged its cars from its trucks and tractors business, with both units on Monday starting trading on the stock market.
He told reporters that if Chrysler lists on the stock market this year, Fiat could take its stake above 50%.
“I think it is possible,” Mr Marchionne said. “I don’t know whether it is likely, but it is possible that we go over 50% if Chrysler decides to go to the market in 2011.”
Fiat bought into Chrysler in 2009 when the US car company received US government funds to stave off collapse.
Any further investment in Chrysler is likely to involve Fiat paying back some of the US state aid.
Mr Marchionne has been restructuring Italy’s largest industrial group, and announced the demerger of Fiat and Fiat Industrial in April.
On the first day of share trading in the companies, the combined market value was slightly above the old Fiat group’s capitalisation of 19bn euros (£16bn).
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.