In 2014, Italian carmaker Fiat acquired the remaining stake in Chrysler.
Fiat’s relationship with Chrysler began in 2009, after Chrysler entered Chapter 11 bankruptcy reorganization. Fiat initially received a 20% stake in the reorganized company, while the United Auto Workers’ retiree healthcare trust, known as VEBA, and the U.S. and Canadian governments held the other major interests. Fiat’s ownership gradually increased as Chrysler recovered.
On January 21, 2014, Fiat purchased VEBA’s remaining 41.5% stake for $3.65 billion, making Chrysler a wholly owned subsidiary of Fiat Group. The purchase completed Fiat’s takeover of Chrysler and cleared the way for a unified corporate structure. The broader acquisition cost was reported at about $4.9 billion, alongside an additional $5.5 billion in pension liabilities.
The two companies were then reorganized under Fiat Chrysler Automobiles, or FCA, on October 12, 2014. Chrysler Group later became FCA US, while Fiat’s Italian operations became FCA Italy. A common confusion is treating FCA’s 2014 formation as the date Fiat first entered Chrysler; Fiat’s initial stake came five years earlier.