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Fiat to get 35% stake in Chrysler

Published Wednesday, January 21, 2009

Chrysler LLC will give Fiat S.p.A. an initial 35% equity interest in Chrysler in return for access to Fiat’s vehicle platforms, powertrain, and components technology, as well as distribution and management services, Chrysler said after the two companies signed a non-binding term sheet to establish a global strategic alliance. Fiat will not surrender any cash as a result of the deal. The alliance is meant to be a key element of Chrysler’s viability plan, as lenders, employees, the United Auto Workers, dealers, suppliers and Chrysler Financial are all expected to contribute to the company’s restructuring effort, Chrysler said.

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