Fiat has come closer to taking control of Chrysler by the end of 2011 by paying $1.27bn to increase its holding to 46 per cent, Bloomberg reports. The 16 per cent stake will be acquired after Chrysler’s pays back debts to the US and Canadian governments and Fiat exercises a call option, the WSJ says. The US government gave Fiat another 5 per cent of Chrysler last week after progress on targets, including opening car dealerships in Brazil. The remaining 5 per cent needed to take Fiat’s holding to over half of Chrysler is expected to come from a target to produce a fuel-efficient car in the US.

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