Chrysler-Fiat deal done and approved

The long-awaited tie-up between Chrysler LLC and Fiat SpA has been finalized, and now the company must get back to the business of building and selling cars and trucks. The two sides signed off on a partnership this morning that creates a new automaker to be known as Chrysler Group LLC, allowing the new company to emerge after a 40-day stay in bankruptcy. It begins operations immediately under new chairman Robert Kidder and Chief Executive Officer Sergio Marchionne, who is also CEO of Fiat. The vice chairman of the former Chrysler, Jim Press, has been appointed Deputy CEO and Special Adviser, reporting to Marchionne and responsible for restructuring the company to create a "new leaner, flatter" organization, Chrysler said. The new Chrysler combines the most valuable assets of the bankrupt automaker with small-car and engine technology from Fiat, which is not putting cash into the deal. Fiat has an initial 20 percent stake in the company, which will grow to 35 percent if Fiat meets three benchmarks. Fiat can buy a majority stake in Chrysler — only after $6 billion in government exit financing loans are repaid. But Chrysler isn't required to pay back the more than $7 billion that Chrysler received earlier. Some of the bad Chrysler assets remain under Chapter 11 protection pending liquidation. Detroit News