It's not clear to me that Fiat has the managerial capacity to make that happen--that's a big move to be making in a collapsing market (and moreover, one which isn't likely to improve any time soon--if the global economy recovers, that will just push oil prices higher. A stake in Chrysler will not be helped by such a movement.) But this is how global automaking overcapacity will be reduced--one dubious merger at a time.
This article available online at:
http://www.theatlantic.com/business/archive/2009/04/fiat-goes-big/16552/
