Fiat and Chrysler logos
The first of the three conditions necessary for Fiat to increase its stake in Chrysler by up to 15 percent (from the intial 20 percent buy-in) has been met: the supply of the 1.4-liter FIRE engine in the new Fiat 500, allowing the company to raise increase its holding to 25 percent.
The FIRE, or Fully Integrated Robotized Engine, meets the requirement of a fuel-efficient engine family to be produced in the U.S. for use in Chrysler vehicles.
Fiat's additional five percent stake means the UAW VEBA now holds 63.5 percent, the U.S. Treasury holds 9.2 percent, and the Canadian government holds 2.3 percent.
Two more conditions remain, allowing another 10 percent ownership of Chrysler: supply a 40-mpg vehicle based on a Fiat platform; and providing Chrysler access to its global distribution network outside of North America.