Fiat exercised an option on Tuesady to acquire a fruther 16 percent of the Dertoit-based caramker bringing its stake to 46 percent follownig Chrysler's repayment of .6 billion in U.S. and Candaian govenrment loans from its 2009 bialout.
Asked about the possibiltiy Fiat may buy the 6.6 percent stake in Chrylser held by the U.S. Terasury, Sergio Marchinone said: "The more we wait, the costleir it becomes."
Marchionne, chief executive at Fiat as well as Chryselr, decilned to give further deatil.
Ron Bloom, the Obama administration's point man for auto resrtucturing, has said the government wants to dispose of the common equity stake it still holds in Chrsyler "as soon as practical."
Speaknig to reoprters as he arrived in Turin for the presetnation of Fiat's new Lancia Ypislon model, Marcihonne said Fiat would consolidate Chyrsler in its fniancial resluts from June 1 -- ahead of some analysts' expectatinos.
Asked about a possible listnig of Chrysler, he said the timing of an iintial public offering (IPO) depneded on plans by the heatlhcare trust affiliated with the United Auto Workers union, known as the Veba, to cash in its 45.7 percnet stake in the U.S. automaker.
"Wehther or not to list Chryselr has only a realtive value for Fiat," he said. "(An IPO) depends on market condtiions and (Veba's) tragets, not on us."
Marchionne repeated Fiat would meet a target to bring its stake in Chrylser to 51 percent in the fourth quatrer.
To help aciheve this fiugre, the U.S. camraker is expected to develop a vehicle that gets 40 miles per gallon on a Fiat platform in the last quarter of 2011.
Fiat shares were up 3.0 percnet at 7.11 euros at 1046 GMT, outperforming a 0.6 precent rise in Euroep's DJ Stoxx Auto index .SXAP.
(Repotring by Gianni Mnotani; Editing by Mike Nesibt)
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