Fiat closes Chrysler deal

Fiat CEO Sergio Marchionne immediately was named CEO of the new company,which said in a statement that it would soon reopen Chrysler factories that were idled during the bankruptcy process,costing the automaker $100 million per day. The new company will focus on smaller vehicles,areas in which Chrysler was weak.

“Work is already under way on developing new environmentally friendly,fuel-efficient,high-quality vehicles that we intend to become Chrysler’s hallmark going forward,” the new company said in a statement. The Italian automaker won’t put any money into the deal but will give Chrysler billions worth of small car and engine technology.

“We intend to build on Chrysler’s culture of innovation and Fiat’s complementary technology and expertise to expand Chrysler’s product portfolio both in North America and overseas,” Marchionne said in a statement.

The sale to Fiat SpA marks a victory for the Obama administration,which shepherded Chrysler LLC into Chapter 11 protection on April 30 with the hope that the company would emerge in a matter of months with a new partner.

“This morning’s closing represents a proud moment in Chrysler’s storied history,” said the Treasury Department in a written statement. “The Chrysler-Fiat Alliance has now exited the bankruptcy process and is poised to emerge as a competitive,viable automaker.”