While no finances will be exchanged, Fiat will earn a 35 percent stake in the North American automaker’s company in exchange for small-car technology and a global sales network.
The smallest of the Big 3 automakers in the U.S., Chrysler’s sales decreased by 30 percent last year as a result of rising fuel costs. More than 60 percent of the company’s sales were from pickups and SUVs, which car purchasers are shying away from in an effort to reduce personal fuel costs.
Many critics have wondered whether or not Chrysler would be able to survive in the long-term even after receiving $4 billion from the U.S. government as part of a bailout package. This move is expected to provide more long-term stability.
The agreement is pending until final approval.
— with files from Bloomberg
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