Fiat Willing to Take Over Canada's Chrysler Stake
TORONTO — The chief executive officer of Chrysler and Fiat said Monday he and Canadian authorities have begun talking about purchasing Canada's 1.7 percent ownership in Chrysler.
The Canadian federal government and provincial Ontario government received 1.7 percent of Chrysler two years ago as part of a bailout that also provided $1.7 billion in loans to help the Detroit company survive.
Chrysler, already controlled by Fiat, recently paid back the last of the money it borrowed from the Canadian and American governments, reported The Detroit News.
Fiat then began the process of buying the shares owned by the U.S. government.
Chief executive Sergio Marchionne joined Canadian Finance Minister Jim Flaherty at a Chrysler Canada casting plant in Toronto on Monday to announce the loan repayment.
Marchionne said that he and Flaherty discussed buying Canada's shares and said they are quite willing to consider purchasing them.
Unlike with the shares owed by the U.S. government, the company has no right to compel the Canadian government to sell.
Flaherty said Ottawa will wait to see how the stock transfer process unfolds in the United States before deciding whether Canada will also sell its shares.
The Turin, Italy-based automaker said Friday it will buy the U.S. government's 6 percent stake in Chrysler under a process that was put in place in 2009 when Chrysler virtually shut down while in bankruptcy court.
Fiat initially received a 20 percent stake in Chrysler in 2009 for providing the automaker with management expertise and technology.
Since then Fiat has been increasing its holdings in Chrysler and will soon control more than half of the company.
Fiat has helped change the corporate strategy of Chrysler, brought new fuel-efficient vehicles quickly to market and made the company cut costs and operate more efficiently.
The future looks brighter for the company, which has cut thousands of jobs in the United States and Canada in its bid to survive bankruptcy.
In Canada, the company employs 9,000 people and has major assembly plants in Windsor and Brampton, a community northwest of Toronto.
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →