Feds, Ontario sell remaining stake in Chrysler to Fiat
July 21, 2011 by The Canadian Press
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.