Nevertheless, Fiat is now allowed to purchase a stake in the American manufacturer which is currently under the protection of Chapter 11 in the United States.
As announced in January this year, Fiat and Chrysler will form a strategic alliance that is believed to help the Detroit-based manufacturer survive in this current difficult economic environment. Additionally, Fiat would take a stake in Chrysler and will use the company's dealership network to expand its coverage in the United States.
Chrysler on the other hand is projected to benefit from Fiat's assembly lines which are more appropriate for recession times as they mostly roll off small cars, more focused on fuel economy and CO2 emissions than Chrysler's current models.
"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC, back in January.