Chrysler and Fiat have now signed an alliance bringing together the two companies
Fiat will own 20% of the new Chrysler Group with Fiat head Sergio Marchionne as CEO. Fiat's stake could be increased to 35% if certain targets are met.
The US Treasury and Canadian Government at 8% and 2% get respectively.
The new company will operate as Chrysler Group LLC.
As part of the alliance, Fiat will help Chrysler with the technology to make smaller, more environmentally-friendly cars.
Other parts of the automaker will remain in bankruptcy to be sold or closed.