Chrysler

Fiat to Buy Remaining U.S. Govt. Stake in Chrysler

AP

 (AP)

Chrysler Group will soon sever its ties with the U.S. government.

Italian automaker Fiat agreed Thursday to buy the U.S. Treasury's 6 percent interest in Chrysler for $500 million. Once the deal closes, the government will no longer hold a stake in the auto company.

President Barack Obama is expected to announce the agreement Friday during a trip to a Chrysler facility in Toledo, Ohio.

Fiat also agreed to pay $75 million for the right to buy Chrysler shares held by a trust for retired autoworkers. The Treasury Department will receive 80 percent of those proceeds, or $60 million, while the Canadian government will get $15 million.

The deal will give Fiat a majority stake in the automaker just two years after it agreed to manage Chrysler after its bankruptcy.

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