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Feds, Ontario sell remaining stake in Chrysler to Fiat


July 21, 2011
By The Canadian Press

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The federal and Ontario governments have sold their remaining stakes in automaker Chrysler to its parent company Fiat for $140 million US.

The money is essentially the final repayment of Canadian government loans to the automaker two years ago as part of a $1.7-billion bailout to help the Detroit company survive the North American auto sector’s worst downturn ever.

The two Canadian governments received about a 1.7 percent stake in Chrysler when they initially made the loans.

Federal Finance Minister Jim Flaherty said the sale marks an important step in the turnaround of the U.S.-based car maker.

Canada gets $125 million for its stake, plus an additional $15 million from an agreement between the U.S. Treasury department and the UAW Retiree Medical Benefits Trust.

Ontario will get one-third of the $140 million, or about $47 million, for its contribution to the Chrysler bailout.