Chrysler, Fiat announce strategic alliance

January 20, 2009

Chrysler and Fiat have signed a nonbinding agreement for a strategic alliance in which Italian automaker Fiat will receive an "initial" 35-percent stake in Chrysler, leaving the door open to expanding the deal.

The companies will share technologies and vehicle platforms. Under the plan, Fiat does not intend to invest cash in Chrysler, but will allow access to its small-car platforms and its more environmentally friendly, fuel-efficient engines.