Fiat finishes buying Chrysler

The Chrysler Group is now wholly owned by Italian carmaker Fiat. The company announced on Jan. 1 that it made a $4.35 billion deal to acquire full control of the Pentastar. This will better allow CEO Sergio Marchionne to combine the automakers' resources, according to a Reuters and Bloomberg report on Automotive News.

Fiat bought the remaining stake from a retiree healthcare trust affiliated with the UAW. The trust received $3.65 billion in cash for the stake, according to reports, $1.9 billion came from Chrysler, $1.75 billion from Fiat. The trust will get another $700 million in installments.

Marchionne will remain as CEO through at least 2016 to watch over the merger, Fiat chairman John Elkann told journalists.

Fiat began buying up Chrysler stock in 2009 as part of a rescue effort during the economic downturn, eventually holding 58.5 percent.

The Fiat board is scheduled to meet later this month to discuss the merger, including the location of its headquarters and main stock listing. A new business plan will be presented in May. Elkann also said the company's name will include both Fiat and Chrysler.

By Jake Lingeman