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Marchionne moves step closer to Fiat Chrysler merger

Fiat has increased its stake in Chrysler by 16% at a cost of $1.26 million in cash, giving it a total share of 51% in the company.

The move was triggered by the closing of the refinancing of Chrysler’s debt and its $7.6 billion debts to the US and Canadian governments.

By consolidating Chrysler's financials, Fiat and Chrysler will report second-quarter results as one company for the first time rather than two separate entities.

The move brings chief executive Sergio Marchionne one step closer to his goal of merging Fiat and Chrysler into a single company, run by one set of managers with one headquarters.

Fiat is expected to gain an additional 5% stake in Chrysler before the end of the year.

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