From Automotive News:
Fiat confirms plan to acquire 35% stake in Chrysler
TURIN, Italy -- Fiat S.p.A. and Chrysler LLC confirmed today that the Italian company intends to acquire an initial 35 percent stake in the U.S. carmaker.
In a joint statement, Fiat, Chrysler and Chrysler's majority shareholder Cerberus Capital Management L.P, said they have signed "a non-binding term sheet to establish a global strategic alliance."
The pact "would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrains, and components to be produced at Chrysler manufacturing sites," the companies said.
Under the terms of the deal, first reported on Monday by Automotive News Europe, Fiat would make available its distribution network in key growth markets. "Substantial cost savings opportunities" would be available to the alliance, the companies said.
The transaction already has the blessing of the UAW. UAW President Ron Gettelfinger said in the press release:
"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability."