Fiat drives back across the pond with Chrysler link-up

Fiat's deal with Chrysler brings the Italian firm back to America after a 25-year hiatus.

"Sergio Marchionne, the Fiat chief, has found a swift response to the lonely hearts ad he took out last month," said Lex in the FT. His deal with Chrysler brings the Italian firm back to America after a 25-year hiatus. Fiat is taking a 35% stake in Chrysler, gaining access to its facilities and distribution network.

As far as the struggling US carmaker is concerned, "it should keep the blood flowing through at least some of its appendages", said John Foley on Breakingviews. Chrysler will get access to Fiat's line of small, fuel-efficient cars just about the only market that's growing at the moment. And it will also give it a better chance of securing US government aid, with Obama expected to link further funding to commitments on green technology, as Mike Ramsey pointed out on Bloomberg.com.

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