Chrysler

Chrysler and Fiat said Tuesday that they have agreed to an alliance through which Fiat will control at least 35 percent of the troubled American automaker.

The deal would allow Chrysler to use Fiat’s technology and vehicle platforms to build more fuel-efficient, small and midsize cars at its factories and sell them in North America, The New York Times’s Nick Bunkley reported.

Fiat, which stopped selling cars in the United States in 1983, does not plan to “make a cash investment in Chrysler or commit to funding Chrysler in the future,” the companies said.

Fiat would have the option to ultimately increase its stake in Chrysler to 55 percent, a person with knowledge of the talks told The Times on Monday.

Chrysler’s agreement with Fiat comes several months after merger talks with General Motors were abandoned as the global vehicle market deteriorated.

Last month, Chrysler, which is controlled by the private equity firm Cerberus Capital Management, received a $4 billion loan from the federal government to help it avoid bankruptcy.

“This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the government loan,” Chrysler’s chairman, Robert L. Nardelli, said in the statement.

“The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs.”

Fiat would give Chrysler access to distribution networks in other parts of the world, particularly Europe. The companies said they expect “substantial cost savings opportunities” but did not specify an amount.

“This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process,” the chief executive of Fiat SpA, Sergio Marchionne, said in a statement.