Chrysler, the US automaker owned by US buyout firm Cerberus, has found an international partner in Fiat but the auto maker isn't out of the woods, mainly because the deal is contingent on Chrysler getting $3bn (€3.9bn) in additional government loans.

On Tuesday, Chrysler and Italy's Fiat confirmed they had reached an agreement on an alliance that would give Fiat a 35% stake in the American company. Fiat would not put any cash into Chrysler but would provide technology and vehicles that Chrysler could build and sell in the US.