Big news in the auto industry today. Without paying a dime Italian automaker Fiat has gained a 35% stake in Chrysler. The two companies have formed a global strategic alliance that will see Fiat provide Chrysler with its small car platforms.

Both companies are banking that the addition of things like Fiat’s small vehicle drivetrains will result in substantial improvements in Chrysler’s line of small fuel-efficient cars. Fiat will also be distributing Chrysler vehicles outside of the U.S.

We can expect that Chrysler will now be using Fiat small vehicle platforms like the Punto or the Fiat 500 to get a new line of small, affordable cars with great mileage. But will it be in time to pull their tail pipes out of the fire?

From an environmental perspective this is all good news since Fiat boasts the most efficient vehicles in Europe.