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Fiat closes deal for Chrysler good assets, clears path for Chrysler to emerge from Chapter 11

Associated Press • Jun 10, 2009 at 12:00 AM

DETROIT (AP) -- Italian automaker Fiat says it has closed a deal to take over Chrysler's good assets, forming a new company and clearing the way for the struggling Chrysler to emerge from bankruptcy protection.

Fiat signed on to the deal early Wednesday after the U.S. Supreme Court late Tuesday refused to hear an appeal of lower court rulings that approved the asset sale.

The deal means that Fiat CEO Sergio Marchionne will take over control of Chrysler.

The Italian automaker won't put any money into the deal but will give Chrysler sorely needed small-car and fuel-efficient engine technology.

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