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Wednesday, May 25, 2011

Delay makes Chrysler stake buy costlier -Fiat CEO, (FIA)

The longer Italian carmaker Fiat SpA (FIA.MI) waits to add to its stake in Chrysler Group LLC, the more expensive the purchase will be, the chief executive of both companies said on Wednesday. Fiat can purchase the U.S. Treasury's stake in Chrysler over the next 12 months. Starting in July of next year, Fiat can also buy shares held by the healthcare trust tied to the United Auto Workers union, known as the VEBA. "The more we wait, the costlier it becomes," CEO Sergio Marchionne said when asked about the possibility Fiat may buy the 6.6 percent stake in Chrysler held by the U.S. Treasury. He failed to comment further.