It’s a deal! Fiat takes control of Chrysler assets

Supreme Court clears the way, and both parties waste no time in signing the deal

By PLE Staff June 10, 2009

Chrysler Group LLC was created Wednesday morning when the bankrupt automaker and Italian carmaker Fiat signed a deal that gave control of Chrysler’s assets to Fiat .

While Fiat actually owns just 20% of the Chrysler assets, it received control of the company as part of a deal brokered by the Obama Administration. Fiat will ultimately get 35% of the assets if it meets fuel efficiency goals, and eventually has the option of owning 51% of the company. That will happen when Fiat repays the $22 billion loaned to it by the federal government. Right now, the government owns a 25% stake in Chrysler and the United Autoworkers union owns 55%.

The deal between Chrsyler and Fiat was put on hold Monday when Supreme Copurt Justice Ruth Bader Ginsburg issued an order to allow the high court to review claims by an Indiana pension board that it would not receive fair value after the sale was completed. By Tuesday, a court ruling cleared the way for the merger.