Chrysler Forms Tie up With Fiat

Experiments are not new to Chrysler – one of US biggest automaker. Over the past years, Chrysler has come up with new owner and new management, but this time its a 'Business Alliance'. Chrysler has formed alliance with Italian automaker FIAT. This tie-up is being seen as lifeline for Chrysler that was recently on the verge of filing bankruptcy.

With this deal, the Italian automaker will have 35% of Chrysler. The other benefits that this alliance will offer include regaining of Alfa Romeo and Fiat in U.S markets. This would be possible through Chrysler's dealership network.

What is that will benefit Chrysler through this business alliance. Fiat will offer Chrysler product & platform sharing, small and big cars and would also bring fuel-efficient technology and the engineering that goes into its small cars.

Commenting on this agreement, Chrysler chairman, Robert L. Nardelli said, "It creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits.” It is believed that such an agreement between the automakers would help them develop a better business. Now this is to be seen that whether Fiat comes out to be a lifeline for Chrysler or not.