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This week Chrysler and Fiat announced a partnership that involves Fiat buying 35 percent of the U.S. automaker, which will give both automakers access to each other product lines and markets. The good news for Chrysler is that the automaker now has access to a whole new line of fuel-efficient small cars. According to Motor Trend the first fruit of the new partnership will be the Fiat 500.

Motor Trend editor Todd Lassa claims that the Fiat 500 is being fast tracked to U.S. showrooms within the next 18 months. The Fiat 500 would be sold in Dodge, Chrysler and Jeep showrooms.

Chrysler and Fiat's newest agreement, which involves Fiat buying a 35 percent stake in Chrysler is going to lead to seven new fiat based cars making their way to the US.

According to unnamed sources four of the vehicles will be sold under the Chrysler brand and three will either be Alfa Romeos or Fiats. The official plan that will be announced on April 30th involves four Fiat platforms, a minicar, a subcompact, a compact and a mid-sized sedan. Chrysler's plants in the US are being tasked with producing the vehicles. Chrysler's Toluca, Mexico plant, which currently builds the soon to be killed PT Cruiser is going to produce the Fiat 500.

According to the Automotive News, under the plan its expected that Chrysler dealers
will get two minicars, the Fiat 500 and a Dodge or Chrysler branded vehicle based on the Fiat Panda.

The subcompact segment will see the introduction of the Alfa Romeo MiTo and another Chrysler or Dodge branded vehicle.

A new compact car based Fiat’s C-Evo platform will likely replace the Dodge Caliber.

Lastly a replacement for the under performing Chrysler Sebring and Dodge Avenger will be based on a stretched version of the C-Evo platform.

In case you are wondering what Fiat is going to get out of this deal, besides entry into the North American market, Fiat is going to sell the Dodge Journey and Dakota pickup in South America. In addition Fiat is going to use Chrysler's new Phoenix V6 engine in its own products.

Fiat's CEO, Sergio Marchionne has told the Globe and Mail and mail that the possible partnership with Chrysler will succeed if the automaker cannot cut labor costs.

Marchionne told the newspaper that the partnership only has a 50-50 chance because of the lack of progress in talks with union leaders. He also stated that Canadian unions have been especially resistant.

"Absolutely we are prepared to walk. There is no doubt in my mind," Marchionne said in an interview posted on the Toronto newspaper's website.

In order for the partnership to work, Chrysler's unions need to agree to labor costs that are equal to that of Japanese and German automakers.

The latest version of the proposed partnership between Fiat and Chrysler states that Fiat would take a 20 percent stake in Chrysler in exchange for the technology to make small cars and access to foreign markets. Fiat would also gain access to the US market.

Fiat and Chrysler have until the April 30th deadline to finalize the deal. If a deal is not reached Chrysler will be forced into bankruptcy. If a deal is reached the U.S. government will provide an additional $6 billion in funding.