The Italian based leading automaker Fiat Automobiles has announced the purchase of greater share in its global strategic alliance with the American car maker Chrysler while no such interest will be extended to Fiat’s another vital partnership with the Japanese company, Mazda Motors.
Fiat Automobiles had teamed up with Mazda Motors through an agreement for the production and development of the next generation of its uber cool roadster, MX-5.
At the company’s annual shareholders’ meeting held in Italy, Mr. John Elkann, Chairman at Fiat confirmed that at present, Fiat has plans to raise the stake in the Chrysler Group by around 3 percent this July while no further stake will be purchased from Mazda Motors.
With the new stake holding at Chrysler Group, the share of Fiat Automobiles will shoot up from around 58.5 percent held currently, to 61.5 percent. Fiat is aiming to gradually conquer 100 percent share in Chrysler and thereby, taking over completely the operations of Chrysler globally. However, the company has not disclosed the targeted time span for such operational take over.
Though Fiat is showcasing lesser interest in building relationship with Mazda Motors, the company is looking forward to manufacture Mazda vehicles at their Fiat and Chrysler production facilities across the world, which will be highly advantageous for the growth prospects of both the companies. This will ensure greater capacity utilization for Fiat while Mazda will be benefitted with the rising Yen that is absorbing a major chunk of its global profits and revenue.
