The announcement of an operating agreement between Chrysler and Fiat that we mentioned on Tuesday has now been made. Here are the details:
 

Chrysler LLC said today it was striking an alliance with Fiat S.p.A. that will give the Italian carmaker 35% of Chrysler in return for sharing technology, manufacturing and management.

The deal must be approved by regulators, including the U.S. Treasury, which oversees a $4-billion rescue loan of Chrysler. Fiat did not commit any cash to the deal, and made no vows to do so in the future.

Chrysler said the deal would give it access to Fiat’s engine and other vehicle technology that Chrysler would build in its plants. Fiat will help sell Chrysler vehicles in foreign markets, where Chrysler lags its competitors today. And Chrysler said Fiat would “provide management services supporting Chrysler’s submission of a viability plan” to federal regulators.

“This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the government loan,” Chrysler Chairman and Chief Executive Bob Nardelli said in a statement.

Gov. Granholm reacted positively to the announcement, saying, “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.”