Chrysler and Fiat form a strategic alliance

January 20, 2009

Detroit (ChattahBox) — Fiat and Chrysler have signed a nonbinding agreement for a strategic alliance aimed at helping them weather an economic downturn threatening the survival. Under the proposed alliance, Fiat would get a 35-percent stake in the troubled U.S. automaker, but they would not invest cash in Chrysler.

The two companies said in a joint statement Tuesday they would share technologies and vehicle platforms.

The deal must be approved by regulators, including the U.S. Treasury, which oversees a $4-billion rescue loan of Chrysler.

Chrysler said the deal would give it access to Fiat’s engine and other vehicle technology that Chrysler would build in its plants. Fiat will help sell Chrysler vehicles in foreign markets, where Chrysler lags its competitors today. And Chrysler said the Italian automaker would “provide management services supporting Chrysler’s submission of a viability plan” to federal regulators.


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