Officially Official: Chrysler Rids Itself of Debt to Union in Finalization of Share Sales
If you remember back to the beginning of last month, Chrysler tied the knot with Fiat completely, finally ridding the world of the notion that it would have to file a public stock offering for the Italian firm to acquire the rest of the American company. Then, as luck would have it, the United Auto Workers VEBA trust fund went for $4.587 billion, which was substantially lower than the $7 billion that the UAW had earlier claimed Chrysler's remaining stock to be worth. Now, after just one month since that agreement had been formed, Chrysler has returned a full $5 billion to the UAW, interest added, meaning that Chrysler is now fully owned by Fiat and is good to start going about its business. That's a good thing because Chrysler and Fiat had sought to share synergies--and profits--through worldwide technology sharing, which might not have been possible with a third of Chrysler still owned by the UAW. Currently, Chrysler's sales are stronger in much of the world--especially North America and China--than Fiat's are in Europe. That is bolstering the company in the recession-stricken European economy.Under the agreement that Fiat Chrysler Automobiles had with the UAW, the automaker was to pay $1.375 the first year, $1.38 the second year, and the remainder of the outstanding money for the last three years. Now, with the debt paid via bonds, Fiat Chrysler Automobiles can go about making cars and trucks again. Next up will be the 2015 Chrysler 200 and Ram ProMaster City, the latter of which should be ready to go by the time the New York Auto Show rolls around in April. Source: Chrysler
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