Fiat buys into US big three
Just days after Chrysler held an impromptu press conference at Detroit to dispel rumours it was being broken up, the troubled US maker has announced that its knight in shining armour has arrived: Fiat.
The two makers have signed an agreement that will see Fiat take a 35 percent stake in Chrysler, in exchange for allowing it access to Fiat's enviable supply of small cars, fuel efficient powertrains and engineering flair.
No money has changed hands, but Fiat will gain from Chrysler's significant US dealer network - all 3,372 showrooms - and will thus be able to smooth (and cheapen) its attack on the US market; a market more ready than ever for small, cheap, fun cars: those like the 500, which Fiat hopes to launch Stateside shortly.
It follows a similar alliance with Nissan, in which the Japanese maker is building small cars for Chrysler for certain markets, and it seems like a canny access strategy to exactly the type of product it needs to get out of trouble. The US Government approves, too - as it must under the terms of the bailout.
Many suspected that Chrysler would be the first US maker to fold, so it's encouraging that it seems, in fact, to be the most proactive in ensuring its survival at present.
