• Detroit Free Press, Financial Times , Tuesday, January 20, 2009 11 AM

Italian automaker Fiat S.p.A. is taking a 35% stake in Chrysler in return for sharing technology, manufacturing and management. Regulators including the U.S. Treasury, which oversees a $4-billion rescue loan of Chrysler, must approve the deal, Justin Hyde reports.

Fiat will help sell Chrysler vehicles in foreign markets, where Chrysler lags its competitors. And Chrysler will assist Fiat in bringing its brands to the U.S. market. Fiat did not commit any cash to the deal, which is expected to be completed in April. The link will be similar to the venture between Japan's Nissan and France's Renault, which have built vehicle assembly plants together, Financial Times reports.

"This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the government loan," Chrysler chairman and CEO Bob Nardelli says in a statement.

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