With the big announcement today that Fiat and Chrysler (OK, technically, Fiat S.p.A., Chrysler LLC and Cerberus Capital Management L.P.), have agreed to a non-binding term sheet to establish a global strategic alliance, we naturally wondered how this will affect Chrysler's small car sales in the U.S. The deal will allow Chrysler to get immediate access to the Italian manufacturer's array of subcompact and compact front-wheel drive fuel efficient platforms, the most efficient in Europe. With this deal, Fiat will get a 35 percent stake in Chrysler in exchange for Fiat's platforms. Fiat has already worked with an American manufacturer, since it actually developed an array of small diesels with GM's European subsidiary Opel/Vauxhall. Chrysler already announced a deal to sell a Nissan-made subcompact in certain Latin American markets. We'll have more on the Chrysler-Fiat deal later.

[Source: Chrysler, Automotive News Europe (subs. req'd)]

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