25 Jul 2009

Fiat tie-up with Chrysler approved

7:53 am on 25 July 2009

The European Commission has approved a tie-up between Fiat and Chrysler, saying the move would not hurt competition in Europe.

Chrysler and Fiat completed an agreement last month to form a new auto company after the Italian group stepped in to salvage the bankrupt US firm.

The move completed a quick restructuring of Chrysler in a plan backed financially by the US and Canadian governments.

Fiat will at first hold 20% of Chrysler Group, rising to 35% and eventually to a majority stake.

Fiat will help Chrysler develop more fuel-efficient vehicles and will use Chrysler's sales network in exchange.