Chrysler Is Pairing Up With Fiat

Chrysler has seen its share of tough times. First it was bought by German company Daimler, after falling behind its competitors GM and Ford. Then the Daimler-Chrysler relationship disintegrated and Daimler sold Chrysler to a holding company. Chrysler already filed Chapter 11 once, and there was recent talk of a second bankruptcy.

However, with the auto bailout package passed and Chrysler receiving essential loan money, it’s determined to turn around and regain an advantage on its publicly owned domestic competitors GM and Ford. Today it announced a big new partnership that will take many by surprise. Chrysler is pairing up with Fiat.

But a tie-up also could be a huge winner for Fiat, which has been angling to get its phenomenally popular 500 model, as well as the stylish Alfa Romeo luxury brand, to American consumers for years. Chrysler's infrastructure could allow the Italian company to do that on the cheap.