by Calculated Risk on 1/19/2009 11:26:00 PM

From the WSJ: Fiat Nears Stake in Chrysler That Could Lead to Takeover

Under terms of a pact that is being hammered out, Fiat is likely to take a 35% stake in Chrysler by the middle of this year. It would have the option of increasing that to as much as 55% ...

Fiat ... wouldn't immediately put cash into Chrysler. Instead it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S. ...

Thirty five percent of Chrysler for the cost of retooling a plant ... that will make Fiats!