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Fiat Increasing Stake in Chrysler

Fiat has made the decision to increase their stake in Chrysler up to 30% in the next few weeks. They are currently awaiting to pass over a few hurdles that are in place by the US government for any company that is purchasing stake in a US company. Why is this? Fiat has made its plans known that they plan to take Chrysler vehicles and offer them to those people in Brazil under the Fiat name in order to reach the goal of having Chrysler vehicles used in the area. By doing this, they are not going to have to negotiate with Chrysler on the brand name and are going to be able to avoid the time that would have been spent introducing the Chrysler brand to the area since it will be under the Fiat name, a brand already known. 

The government is waiting to prove that the Fiat has met all the objections that they must meet in order to get this extra 5% of the company stakes from the government. However, thus far it looks like Fiat has performed every action that is needed of them in order to get the remaining percentage that they are seeking. 

But why are Fiat and Chrysler so obsessed with getting the brand and the vehicles that are offered to other nations? It is all about global presence. Thus far, Chrysler really only has a presence in the United States, they do not have as much of a presence elsewhere when compared to the other US automakers, General Motors and Ford. However, with the partnership through Fiat they are hoping to change that and make Chrysler Fiat a global name that people will recognize. Plus, the increased sales from branching into other areas is one reason why the company is striving to do so. The transaction between the two companies should become complete soon as it seems to be just a bunch of red tape in the way right now.