Fiat and Chrysler create global strategic alliance

Italian automaker agrees to take a 35 percent stake in the struggling American auto company; in return, Chrysler will get access to FiatÔÇÖs fuel-efficient vehicle technologies.  The deal, announced in a joint statement by the two companies, would allow Chrysler to use FiatÔÇÖs technology and vehicle platforms to build smaller and more fuel-efficient cars in its factories and sell them in North America.  Fiat would give Chrysler access to distribution networks in Europe and other parts of the world. The companies said they expect ÔÇ£substantial cost savings opportunitiesÔÇØ but didnÔÇÖt specify an amount. Fiat, which pulled out of the US auto market in 1983, does not plan to ÔÇ£make a cash investment in Chrysler or commit to funding Chrysler in the future,ÔÇØ the companies said in the statement.  Chrysler, the weakest of DetroitÔÇÖs Big Three carmakers, got $4 billion in US government loans last month to avoid collapse, and its chief executive said last week he was counting on $3 billion more.  The partnership is expected to be a ÔÇ£key elementÔÇØ of the viability plan the company must submit by March 31 as a condition for the loans. Formation of the partnership is subject to approval from regulatory authorities, including the US Treasury.  A spokesman for German carmaker Daimler, which owns a 20 percent stake in Chrysler, said it was continuing efforts to sell its holding and welcomed any initiative that served to stabilize the situation at the US auto giant.  Analysts had questioned whether Chrysler could survive without a partner. Most of its sales are in the US market, where Chrysler posted a 30 percent drop last year.┬á