Chrysler has entered into a tentative deal with Fiat that would allow the Italian automaker to take a 35% equity stake in the American automaker. In exchange, Chrysler would get access to Fiat engineering, and possibly some whole vehicles. Fiat would also be able to sell some of its products in the Unite States and use some of Chrysler's factories here, as well.
In all, Chrysler will get seven new small vehicles out of the deal, the carmaker said in its restructuring plan. It will also get six new engines and transmissions.
Chrysler says it still has an agreement with Nissan under which Chrysler will produce a version of the large Dodge Ram truck for the Japanese automaker, and Nissan will produce a small car for Chrysler. But that agreement is reportedly on hold while the two companies work out financial details.
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Last updated February 18 2009: 11:42 AM ET