This probably means Chrysler will receive the $6 billion loan from the government (as opposed to the deep pockets of Cerberus Capital Management) but beyond that, details are limited for now. The US auto industry is being forced to change radically or desist. It's unfortunate that so many previous administrations and members of Congress have allowed Big Auto to avoid making tough decisions in the past, but those days are now over. Obama is doing the right thing with Detroit, and hopefully soon with Wall Street as well.
Chrysler LLC and owner Cerberus Capital Management said Monday they entered into a global alliance with Italian auto maker Fiat SPA with the help of the U.S. Treasury. Chrysler said the Fiat alliance will not only help it pay back government loans sooner but strengthens its ability to create and preserve U.S. jobs. The alliance raises the possibility that the U.S. government may invest another $6 billion in Chrysler.
