Yesterday Fiat said it had agreed to buy the remaining 41.46-percent stake in Chrysler from the UAW’s VEBA Trust.
The voluntary employee benefits association will receive $3.65 billion from Fiat S.p.A said the company in a statement, and Chrysler will also pay a total of $700 million in four annual payments making the total deal worth $4.35 billion.
The merger is expected to close Jan. 20.
“In the life of every major organization and its people, there are defining moments that go down in the history books,” said Sergio Marchionne, CEO of Fiat and Chrysler. “For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments.”
This is a significant agreement to the automotive industry, but ramifications for the alternative energy car market are not entirely clear.
Presently, Fiat makes the 500e electric car which sells in limited numbers, and Chrysler and Jeep are offering a 3.0-liter V6 clean diesel the Grand Cherokee and Ram 1500 pickup, with plans for more diesels to come.
Chrysler has been working on hybridization too, although in November 2011, Marchionne said it would do so only because it has to in order to meet government efficiency mandates in coming years.