Milan, Italy - Fiat has completed its buyout of Chrysler, making the US business a wholly-owned subsidiary of the Italian carmaker as it gears up to use their combined resources to turn around its loss-making operations in Europe.
The company annouced on January 1 that it had struck a $4.35 billion (R47bn) deal - cheaper than analysts had expected - to gain full control of Chrysler, ending more than a year of tense talks that had obstructed Chief Executive Sergio Marchionne's efforts to create the world's seventh-largest carmaker.
The Chrysler buyout talks have been closely watched by debt and equity investors because Fiat's long-term plan to cut losses in Europe depends on its ability to deepen ties with Chrysler.
The US business is now a profit centre for Fiat, but the two companies are still forced to manage their finances separately. A full merger will make it easier - but not automatic - to combine the cash pools of the two companies, giving Fiat more funds to expand its product line-up.
Fiat will discuss the merged company's future headquarters and a potential listing outside Italy at a board meeting scheduled for January 29.