IT'S DONE. Chrysler has announced that it has finalised its alliance with a consortium led by Fiat, and that the new alliance between the two companies will finally allow it to get back on its feet and repay its considerable debts.
In a statement released late yesterday, Chrysler said that Fiat will supply it with small and medium-car platforms, powertrains and other technology, which the American automaker will use to diversify its product lineup beyond what it currently offers as well as boost its environmental credentials.
Fiat will also lend a hand with opening untapped global markets for Chrysler, with the Latin American and Russian markets being of prime interest.
Auto industry newcomer C. Robert Kidder (above) is Chrysler's new Chairman, while Fiat boss Sergio Marchionne will take over from Robert Nardelli as Chief Executive Officer.
"We intend to build on Chrysler?s culture of innovation and Fiat?s complementary technology and expertise to expand Chrysler's product portfolio both in North America and overseas," Mr Marchionne said.
"Those Chrysler operations assumed by the new company that were idled during this process will soon be back up and running, and work is already underway on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward.
"From the very beginning, we have been adamant that this alliance must be a constructive and important step towards solving the problems impacting our industry.
"We now look forward to establishing a new paradigm for how automotive companies can operate profitably going forward."
As a part of its transformation, Chrysler LLC has effectively renamed itself Chrysler Group LLC. Fiat will initially take a 20 percent stake in Chrysler Group LLC, with the Italian conglomerate's equity share rising to 35 percent provided a number of milestones, agreed as part of Chrysler's restructure, be achieved.
However, until all debts to US and Canadian taxpayers are repaid, a majority stake will be out of Fiat's reach.
The United Auto Workers? Retiree Medical Benefits Trust presently holds a 55 percent equity share in Chrysler Group, while the US Treasury and Canadian Government hold eight and two percent respectively.