Chrysler, Fiat Set Partnership

In a matter of hours following a demand by the Obama administration, Chrysler LLC said Monday it has agreement to form a “global alliance” with Italian auto maker Fiat, news services reported.

Obama said Monday morning that the U.S. government would not provide an additional $6 billion requested by Chrysler unless the automaker formed a partnership with Fiat within 30 days, Bloomberg reported.

Chrysler Chairman and Chief Executive Officer CEO Bob Nardelli said in a statement that Fiat will provide his company with “product and platforms, technology cooperation and global distribution,” in a deal the companies made along with Cerberus Capital Management, which owns an 80% stake in Chrysler.

“We cannot, we must not, and we will not let our auto industry simply vanish,” Obama said in a televised statement.

Nardelli warned that Chrysler still has “substantial hurdles to resolve,” but that the company is “committed to working closely with Fiat, the administration, U.S. Treasury and the [president’s auto] task force.”