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Fiat and Chrysler will eventually be merged: Marchionne
January 14, 2013 / 4:41 PM / 5 years ago

Fiat and Chrysler will eventually be merged: Marchionne

(Reuters) - Fiat SpA and Chrysler Group LLC will eventually be merged even if Chrysler does go for an initial public offering, said Sergio Marchionne, the chief executive of both automakers.

Fiat-Chrysler chief executive Sergio Marchionne makes his speech during the visit of Italy's Prime Minister Mario Monti at the Fiat car factory in the southern city of Melfi December 20, 2012. REUTERS/Ciro De Luca

“We will eventually have a merged car company,” Marchionne told reporters at the Detroit auto show.

A minority owner of Chrysler last week pushed the U.S. automaker to take the first step toward becoming a public company again by demanding that Chrysler register shares with U.S. regulators.

A voluntary employee beneficiary association (VEBA), which owns 41.5 percent of Chrysler, has the right to make the demand because of a 2009 agreement that brought Chrysler out of bankruptcy and left Fiat as majority-owner.

Fiat, which owns 58.5 percent of Chrysler, has no interest in reducing its stake in Chrysler or relinquishing its call option rights to buy Chrysler stock from VEBA, Marchionne said.

Reporting by Jennifer Clark; Editing by Saumyadeb Chakrabarty

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