Chrysler announced on Tuesday that the company will be forming an alliance with Italian based car manufacturer Fiat. The proposed alliance would give a 35% stake in Chrysler to Fiat in exchange for sharing of management, manufacturing, and technology. The alliance hopes to allow Chrysler and its subsidiary Dodge to enter into foreign markets where the American car manufacturer has fallen behind its competitors, and boost Fiat’s North American sales. Chrysler will have access to all Fiat vehicle platforms allowing the US auto maker to offer smaller, more fuel efficient, and environmentally friendly cars into their production portfolio. The hope is that the agreement will help provide sustainable sales and market share consequentially creating more jobs and helping to boost the economy. The deal was designed to enhance the return on investment for American tax payers from the $4 billion loan that Chrysler received earlier this month. The alliance, that is expected to be completed by April of this year, is subject to approval by the U.S. Treasury which is overseeing the $4 billion rescue package for Chrysler. No stipulations involving cash compensation from Fiat were involved in the agreement.
Source: http://www.freep.com/
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