Chrysler and Fiat have confirmed they have reached an agreement on an alliance that would give Fiat a 35% stake in the American company. Under the proposed alliance, Fiat would not invest cash in Chrysler, but would provide technology and vehicles that Chrysler could build and sell in the U.S.

The two companies said in a joint statement they would share technologies and vehicle platforms. The statement said Fiat would take an "initial" 35-percent stake, suggesting the deal may be broadened. It stressed that under the agreement the company is not committing to funding Chrysler in the future.
Chrysler nearly ran out of money before the U.S. Treasury agreed to loan the company $4 billion last month. To meet the Treasury's terms for loans, and to qualify for an additional $3 billion in aid, Chrysler needs to devise a plan by February 17, that shows how it intends to return to profitability. While having Fiat as a partner helps Chrysler offer a longer-term vision, it does little to ease its current cash crunch.