Hard shoulder:FIAT HAS taken a 35 per cent stake in the troubled Chrysler Group, giving the US firm access to expertise in fuel efficient platforms and small car technology.
The alliance should help it move towards smaller car production and thereby secure further US government aid, particularly as president Barack Obama is expected to link any more aid to greener technology. In return Fiat gets access to the US market after a 25-year absence.
The deal is a technology-for-equity swap, with no cash payment or commitment to future funding, so Fiat’s risk is limited if Chrysler closes. It follows comments from Fiat boss Sergio Marchionne that only six big global car groups will be left by 2011.