VEBA Trust Will Receive $3.65 Billion
If all goes well, the Chrysler Group will start the new year with a new ownership structure, as Fiat has come to an agreement to purchase the outstanding equity stake currently owned by the VEBA trust (which was “established to pay health-care benefits for retirees from Chrysler” as part of the government bailout program). More specifically, Fiat S.p.A. (the holding company) has announced that Fiat North America (its subsidiary) will acquire the interest in the Chrysler Group, paying about $3.65 billion for the privilege, with the sale expected to close by Jan. 20, 2014.
Said Sergio Marchionne, CEO of Fiat, as well as chairman and CEO of Chrysler Group: “In the life of every major organization and its people, there are defining moments that go down in the history books. For Fiat and Chrysler, the agreement just reached with the VEBA is clearly one of those moments. I will be forever grateful to the leadership team for the support and unwavering dedication shown to the integration project that today has taken its final shape. The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization that will ensure all employees a challenging and rewarding environment.”