Fiat closes in on Chrysler

Fiat can smell blood and are looking to secure a majority stake in Chrysler, after the Italian firm agreed a £785m deal for a further 16 percent of iconic American car manufacturer.

At the moment, Fiat has 35 percent of all Chrysler shares - but that figure will rise to 51 percent once it has paid back US government loans.

Fiat boss Sergio Marchionne said: ‘This is a fundamental step towards completion of the momentous integration of Fiat and Chrysler, initiated less than two years ago, that will result in the creation of a global auto maker.’

It’s rumoured that Fiat will seek to sell Chrysler once it gets majority control. Its value could be as much as £6.64bn, which would give Fiat a profit of around 30 per cent on its stake.

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