As the final step in its restructuring, Chrysler LLC issued 20 percent equity interest in its strongest assets to Fiat. The Obama administration has been directing Chrysler's reorganization in which the automaker will jettison its weaker assets by sale or closure. The move also opens an opportunity for Fiat, which has also been struggling for years, to increase its market share.

Chrysler's largest share holder, a retiree health care trust fund established by the UAW, holds 55 percent, while the U.S. Treasury holds 8 percent and Canada holds 2 percent. Fiat will be allowed to obtain up to 35 percent equity interest once Chrysler has achieved certain stipulations in the agreement. For Fiat to obtain a majority status, Chrysler would have to pay back its taxpayer fund debts, according to Automotive News.

With its affiliation with Fiat, Chrysler will be able to add several sorely-needed models to its line-up, including a mid-size sedan, the Alpha Romeo 159, and two fuel efficient sub-compacts, the Fiat 500 and Fiat Grand Punto. Fiat's current CEO, Sergio Marchionne will become the take that seat at Chrysler.