Chrysler, Fiat sign agreement

ROME (AP) - Fiat and Chrysler say they have signed a non-binding agreement that would give the Italian auto empire a 35-percent stake in the troubled U.S. carmaker Fiat will not invest cash in Chrysler, but the companies say in a statement they would share technologies and vehicle platforms.

Fiat will provide access to its successful small-car platforms and its more environmentally friendly and fuel-efficient engines.

The deal allows Auburn Hills, Mich.-based Chrysler to break out of the North American market and gain access to more competitive products.

Fiat Group SpA has expressed interest in bringing its Fiat 500 compact car and the Alfa Romeo brand to the U.S.

The alliance is subject to a review of company finances and regulatory approvals.

In a statement after the announcement, Gov. Jennifer Granholm said, “A new global strategic alliance between Chrysler and Fiat will help build a stronger, more vibrant future for the auto industry in Michigan. This new partnership has the potential to protect thousands of jobs, help ensure Chrysler’s viability well into the future, and accelerate the production of fuel-efficient and technologically advanced vehicles.”