Chrysler 2010 Annual Report Download - page 269

FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2010
NOTES
268
38. Subsequent events
On 10 January, Fiat increased its stake in Chrysler Group LLC from 20% to 25% following achievement of the first of the three Performance Events (i.e.,
attainment of US regulatory approval and a commitment to produce an engine based on Fiat’s FIRE family in the USA) stipulated in the alliance agreement.
On 9 February, Moody’s Investors Service completed the review of Fiat S.p.A.’s rating for possible for downgrade initiated on 21 July 2010. Fiat S.p.A.’s
long-term debt rating was affirmed at Ba1 and its short-term rating at “Not Prime”. The outlook is negative.
On 11 February, Fiat Powertrain and Penske Corporation reached an agreement for the purchase, by Fiat Powertrain, of Penske Corporation’s 50%
stake in VM Motori S.p.A. The agreement is subject to the customary clearance by the relevant competition authorities. VM Motori, headquartered in
Cento (Italy), is a long-established company specialized in the design and manufacture of diesel engines based on proprietary technology. Pursuant to the
agreement, VM Motori will be subject to the joint control of Fiat Powertrain and GM (which acquired a 50% interest in the company in September 2007).
On 15 February, In a meeting held at the Unione Industriale di Torino, Fiat presented trade unions with a plan for relaunch of activities at the Officine
Automobilistiche Grugliasco (formerly Carrozzeria Bertone), which has been inactive for several years. The plan centers around a €500 million investment (to
begin in the second half of 2011) for production of a new E-segment Maserati for international distribution. Start of production is planned for December 2012.
18 February 2011
On behalf of the Board of Directors
/s/ John Elkann
John Elkann
CHAIRMAN