Chrysler and Fiat have agreed to a deal that would give the Italian automaker a 35% stake in the US company, but there’s a hitch: it doesn't become final unless Chrysler bags another $3 billion from the federal government, reports the Wall Street Journal. The partnership will give Chrysler a technology boost, and Fiat more access to the US markets for its fuel-efficient cars, but it comes with no cash.
Chrysler narrowly avoided bankruptcy by getting $4 billion from Treasury last month. To get a second installment, the company must a demonstrate a viability strategy by Feb. 17. Don't be surprised if another partnership is part of that plan, BusinessWeek writes, because the Fiat deal, which won't really produce results until 2011, isn't going to save Chrysler.