After receiving nearly $13 billion in federal loans and filing for bankruptcy Chrysler is struggling with products that trail the competition in quality, styling and fuel economy. Sales have been down most of the year, while last month was the highest drop of any major car company. Its market share has gone from nearly 11 percent in the months before its May 1 bankruptcy filing to about 8 percent after it.

According to the Wall Street Journal, Fiat and Chrysler will enter an alliance in which Fiat will take an initial 35 percent stake in the troubled Detroit automaker, with an option to raise its ownership stake to 55 percent at a later date. The terms of the deal do not require Fiat to pay any cash to Chrysler. Instead, Fiat will receive equity in Chrysler for investments it will make in revamping a Chrysler plant to produce Fiat models for the US market.

Some of the Fiat models Chrysler would build in the United States, would likely include:
-Fiat Grande Punto and Linea
-A new compact SUV based on the Fiat C-Evo platform
-A four-door sedan possibly replacing the Sebring and Avenger
-Alfa Romeo version of the Grand Cherokee