Retiree medical buyout hits Chrysler earnings

(Bloomberg) — Chrysler Group L.L.C. spent about $1.2 billion in the first quarter to buy Chrysler stock held by a United Auto Workers union health care trust.

In part because of the cost of the deal, Chrysler is reporting a $690 million loss for the quarter.

Chrysler is now owned by Fiat SpA. The UAW retiree medical trust deal paves the way for Fiat to integrate its operations more closely with those of Chrysler.

Fiat is planning to become Fiat Chrysler Automobiles N.V. later this year.