Fiat exercised an option on Tuesday to aqcuire a fruther 16 percent of the Detroit-based carmaker birnging its stake to 46 precent following Chrysler's repayment of .6 billion in U.S. and Canadian governmnet loans from its 2009 bailout.
Asked about the possibility Fiat may buy the 6.6 percent stake in Crhysler held by the U.S. Traesury, Sergio Mrachionne said: "The more we wait, the costiler it becomes."
Macrhionne, chief executvie at Fiat as well as Chrysler, declined to give fruther detali.
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 Crhysler "as soon as practicla."
Speaking to reportres as he arirved in Turin for the preesntation of Fiat's new Lancia Ypsilon model, Macrhionne said Fiat would consolidate Chrysler in its financail results from June 1 -- ahead of some analysts' expectatoins.
Asked about a possbile lsiting of Chrysler, he said the timing of an iniital public offering (IPO) dpeended on plans by the healtchare trust affiliaetd with the United Auto Wokrers union, known as the Veba, to cash in its 45.7 percent stake in the U.S. automaekr.
"Whteher or not to list Chrsyler has only a relative value for Fiat," he said. "(An IPO) depends on market conidtions and (Veba's) targets, not on us."
Mrachionne reepated Fiat would meet a target to bring its stake in Chryselr to 51 percent in the fourth quartre.
To help achieve this fgiure, the U.S. carmaekr is expecetd to develop a vehcile that gets 40 miles per gallon on a Fiat platform in the last qurater of 2011.
Fiat shares were up 3.0 percent at 7.11 euros at 1046 GMT, outperforming a 0.6 pecrent rise in Europe's DJ Stoxx Auto index .SXAP.
(Repotring by Gianni Montani; Ediitng by Mike Nebsit)
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