Chrysler and Fiat make it Official

Chrysler and Italian automaker Fiat on Wednesday officially signed a strategic alliance brokered by the U.S. government, one day after the Supreme Court cleared the path for the deal.

Fiat will initially take a 20% stake in the company, which can go up to 35% if it reaches certain fuel-efficiency goals.

"This is a very significant day ... for the global automotive industry as a whole," said Sergio Marchionne, Fiat's chief executive who was named the CEO of Chrysler on Wednesday. "From the very beginning, we have been adamant that this alliance must be a constructive and important step towards solving the problems impacting our industry."

Fiat spokesman Gualberto Ranieri said Marchionne will retain the title of CEO of both Chrysler and Fiat. Former Vice Chairman Jim Press was promoted to deputy CEO and special advisor; he will be the point man for Chrysler's restructuring.

The deal formed a new company, called Chrysler Group LLC, after the former Chrysler LLC sold nearly all of its assets to the new firm.

Source: CNN