Fiat gets a big stake in Chrysler, if…

Deal appears to hinge on additional loan money for struggling automaker, WSJ reports
By Plant Engineering Staff January 22, 2009

Chrysler has given a 35% stake in its company to Fiat in ex change for technology necessary to bring smaller, fuel-efficient cars into Chrysler showrooms.

The deal, according to the Wall Street Journal , has a string attached %%MDASSML%% a $3 billion loan that would come from the remainder of $750 billion TARP funds that Congress approved last week. In order to get the $3 billion, on top of the $4 billion already loaned to the automaker, Chrysler had to come up with a plan to return to profitability. The Fiat deal appears to be that plan.