Fiat at a green light on Chrysler purchase

AUBURN HILLS, Mich., Jan. 5 (UPI) -- Fiat SpA said it would introduce a 2013 Dodge Dart at the Detroit auto show that would satisfy the final government condition for full ownership of Chrysler.

With introduction of a car that has combined highway and city fuel economy rating of 40 mpg, Fiat's ownership of Chrysler increases from 53.5 percent to 58.5 percent, The Detroit News reported Thursday.

"The acquisition of a further 5 percent of Chrysler is a fundamental step in completion of the integration between our two groups," said Fiat-Chrysler CEO Sergio Marchionne in a statement released Thursday in Turin, Italy, where Fiat has its headquarters.

Fiat bought 20 percent ownership of Chrysler during its rescue of Chrysler from bankruptcy in 2009. It then took a series of steps mandated by the government to incrementally increase its shares. Those steps included producing a Fiat engine in the United States, increasing Chrysler's export business to $1.5 billion, and paying back the United States and Canadian governments bailout funding, which Chrysler accomplished six years ahead of schedule.

The United Auto Workers union trust fund for retirees owns the remaining 41.5 percent of the company.

Fiat and the UAW have not been able to agree on a price so Fiat can buy out the union's shares. Chief Executive Officer Sergio Marchionne said having Chrysler go public would allow the union to sell its shares at an agreeable price. But he is not in a hurry to push Chrysler toward an initial public offering, the newspaper said.