This will enable a joint venture in the ability to bring on a production for cars and SUVs that have a market in the US but are manufactured elsewhere. The investment of $1.3 billion which has been chalked out for this is going to be divided equally amongst both the car manufacturers that is Fiat and Chrysler. The initial plan is to make about 280,000 cars. These cars are going to be sold locally in Italy, in the whole of Europe and the North American market as well.

The new Alfa Romeo was unveiled by the chief executive officer in the plant at Turin amidst the workforce. The workers were told that this is the perfect platform for Italian car makers to go on and showcase the kind of work that they can have done. Also, it will give them a cutting edge to be able to compete in the global scenario. The plant has all the possible infrastructure, tools and resources to be able to become the very best and make cars that can be sold around the world.

The five-year loan from the country’s bailout funds will be used to accommodate more loans to potential vehicle buyers. The loan, which was a part of the $700 billion Congress fund to rescue financial institutions, is contracted under a flexible interest rate.

Chrysler Financial was not the sole benefactor of the funds. Automotive companies like General Motors and Chrysler LLC were also given emergency loans. GMAC Financial Services, likewise, was also given financial aid.

Chrysler received its $4 billion in federal funding last January 2. The company announced that it will use the money to pursue its current automotive operations. Chrysler Financial received funding after it suddenly backed out of business in August. The said break down in the company’s financial arm cost Chrysler LLC more than 20 percent of its expected sales.

The Chrysler automotive company was not the sole victim of the fell down in the automobile market. Experts agree that a large number of automobile dealers have opted to get loans from commercial banks in order to augment sales deficit.

Authorized dealers of automobile manufacturers have even withdrawn money from cash management accounts. The said panic caused many automobile companies to be incapable of showing good credit standing. This eventually resulted to the rejection of the manufacturer’s loan applications.

Chrysler Financial CEO, Thomas Gilman, said that the company had the same fate. He said that he even sent a memo to their dealers encouraging them to stop withdrawing their management account money.

Chrysler was the first to be given assistance following its 30 percent sale drop in 2008. The deficit was said to be the largest among automobile companies.