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FCA: Fiat did not get Chrysler “free”

by Daniel Bennett on

In a rather sharply worded blog post today, FCA Senior VP of Communications, Gualberto Ranieri, laid out in crisp detail the ins and outs of the acquisition of Chrysler by the then Fiat Spa.

Contrary to what most people seem to think, Fiat actually paid over $5 billion dollars for the Chrysler group.  $5.6 billion to be more exact. That is hardly the “free” which is what usually gets bandied about when people talk about Fiat getting Chrysler.

To quote directly from the article:

“In detail, Fiat paid: $1.268 billion for an incremental equity call option, to acquire 16% of Chrysler; $500 million for the 6% formerly owned by the U.S. Treasury; $125 million to acquire the 1.5% formerly owned by the Canadian governments; $75 million to purchase the rights under an equity recapture agreement; and $3.65 billion to purchase the final 41.5% of equity interests in Chrysler Group that had been held by the UAW Retiree Medical Benefits Trust, also known as the VEBA.”

Hardly free. Ranieri also goes on to re-iterate that Fiat has completely and 100% paid back the money that it was required to pay back, from the loan that was granted by the US Government. He quotes Ron Bloom, who was formerly special assistant to President Obama as saying:

“When Chrysler, the new company, says: We paid back every penny we borrowed − that is 100 percent correct.”

To read the FCA blog, go here:  http://blog.fcanorthamerica.com/2015/02/05/the-truth-behind-the-chrysler-bailout/

Dan Bennett was doomed from the start. His parents bought a 1970 Plymouth Road Runner when it was known that he was coming along, and the rest of the story was written from that point forward.
Raised in a Mopar only home, Dan has also been Mopar only. From ’60s, ’70s, and ’80s muscle to current SRTs of various flavors, Dan has owned, and in many cases raced, each of the Mopar brands.
Dan’s real career is as a “parts guy” at a local dealership, but he also is a muscician, computer geek/gamer, avid reader, and general all around seeker of knowledge. His whole working career has been spent in the parts industry, starting in the aftermarket, and now at the dealership level. He took a couple years off and went in a different direction for a bit as a jewelry designer and salesman, and even though he won a design award for a piece, his true calling, automotive, won out in the end.
He has written articles, or has had vehicles that have appeared in Mopar Muscle, Sport Truck, and Truckin’. In various forums and social media, he has made a name for himself as the “Go-to” guy for tech information for all things Mopar. He also has a large background in many forms of racing and engine building, holding at one point a ASE Certified Master Engine Machinist rating. Though he no longer keeps that certification up to date, he is still very active in the engine building side when he has spare time.
To Dan, there is no option to covering the Mopar world, it is an imperative that must be done to keep his world in balance.
You can contact him at (206) 736-7670.

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