During a meeting of Fiat shareholders in Turin yesterday Group CEO Sergio Marchionne continued to emphasise the value of the proposed alliance with Chrysler LLC that was announced in January, saying that it could potentially bring 'great benefits' to the Italian carmaker.

"We are in the phase of finalising an agreement with Chrysler which could bring great benefits to our company," Marchionne told shareholders. Last week Fiat's Alfredo Altavilla was the latest representative of the Italian car maker to meet with the Presidential Auto Task Force where he outlined in detail the benefits of the technology that Fiat would bring to the alliance if it goes ahead.

Under the terms of the non-binding agreement with Chrysler LLC, Fiat will gain a 35 percent stake (with the option to raise this to 55 percent) in exchange for supplying its efficient technologies and platforms which the American firm's CEO Bob Nardelli has recently valued at between US$8 and 10 billion. Fiat will gain access to the US market to initially relaunch Alfa Romeo and bring over the award-winning Fiat 500 supermini, possibly to be sold stateside under a special "500" brand name, while Chrysler will in turn will get a foothold in Europe and other countries worldwide where Fiat is present. Fiat will also gain access to the Jeep brand's off-road technology and platforms.

Marchionne told shareholders that his meetings with the Presidential Auto Task Force "have been and continue to be very constructive." He added that "I met these guys twice and I am honestly amazed at their very quick learning curve on such a complicated sector as the auto business." The proposed alliance with Chrysler LLC is dependent on the American firm receiving an extra US$5 billion in loans from the US Treasury Department (it is currently surviving on a US$4 billion loan given before the end of last year) with a decision on the second round of support to be announced by next Tuesday. However widespread leaks in recent days suggest that Chrysler (and its fellow American carmaker General Motors) will get the aid they are asking for.