Fiat now is majority owner of Chrysler after acquiring the U.S. government’s remaining stake in the Auburn Hills, MI-based auto maker.

Under terms of the deal, Fiat pays $500 million for the U.S. Department of Treasury’s 6% stake, or 98,000 shares, in Chrysler, as well as $60 million for the government’s option rights to the United Auto Workers union’s Voluntary Employee Beneficiary Assn.

The U.S. government in 2009 provided $12.5 billion to Chrysler in bankruptcy funding. Of that amount, $11.2 billion has been repaid, with the remaining $1.3 billion unlikely to be recovered, according to the Treasury.

“With today’s closing, the U.S. government has exited its investment in Chrysler at least six years earlier than expected,” Assistant Secretary for Financial Stability Tim Massad, says in a statement.

Fiat also today pays the Canadian federal and Ontario provincial governments $150 million for their remaining 1.7% ownership stake in the auto maker.

The Canadian governments provided Chrysler with $2.9 billion in funding in 2009. About $816 million of the total is not expected to be recovered.

Fiat now holds 53.5% of Chrysler and is expected to boost its stake to 58.5% later this year.