Tuesday, a deal between Fiat and Chrysler was announced via a letter of intent, which if or when finalized, would give the Italian automaker a 35 percent stake in Chrysler, along with access to the latter’s United States manufacturing features and distribution network.

In return, Chrysler would be allowed to sell its larger vehicles in Fiat's international dealerships, while by using Fiat's small engine and transmission technology, it would also come to add small and fuel-efficient cars to its business.

Speaking of the partnership, Jon Gray, owner of Orange Coast Chrysler Jeep Dodge in Costa Mesa, stated he would be thrilled to market Alfa Romeos or Fiats or Fiats badged as Dodges.

The deal serves as a prototype for the auto industry’s new method of doing business, which entails that companies trade their strengths with competitors so as to abate their weak points, thus hoping that both parties involved would benefit from the partnerships.

Among the other companies that have applied the method are India's Tata Motors and Japan's Nissan Motor Company.

Nevertheless, where the deal between Fiat and Chrysler is concerned, there is a bit more at stake than covering up the weaknesses, given that the latter automaker has already borrowed $5.5 billion from the federal government and is prone to need more in the near future. Consequently, the 35 percent offer the company has made to Fiat translates as a means to try to solve issues such as the lack of fuel-efficient compact and subcompact cars and the fact that the manufacturing and sales infrastructure is not being exploited at its full potential.