Cerberus Capital Management unveiled a major component of its restructuring plan today: an alliance with Italian automaker Fiat SpA.
As part of the deal, Fiat will take a 35% equity interest in Chrysler. The agreement calls for the two companies to leverage each other’s distribution networks and suppliers, among other things, to create “substantial” cost savings.
For more details about the agreement, click here.
The move comes on the heels of a $1.5 billion federally mandated capital infusion to Chrysler Financial last week.