Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, January 10, 2011

Fiat ups stake in Chrysler to 25 percent, (FIA)

Italy's Fiat (FIA.MI) has lifted its stake in Chrysler to 25 percent after winning approval to build a new engine in Dundee, Michigan, one of three conditions agreed with the U.S. government when it invested in the troubled U.S. carmaker. The announcement on Monday increases the likelihood that Fiat will own a majority of Chrysler by the end of the year, as indicated by Fiat's chief executive Sergio Marchionne last week. Fiat had to fulfill a set of criteria to increase its holdings in the U.S. carmaker and Fiat now has the option to increase its stake to 35 percent. (Writing by Lisa Jucca in Milan; Editing by Greg Mahlich)