This brings Fiat's total stake in the carmaker to 46% and the carmaker has said that it's looking to add a further 5% in Q4 as part of a performance goal agreed with the US as part of the takeover in 2009.

Fiat CEO, Sergio Marchionne, said the move will result in the creation of a global automaker: 'We have chosen to accelerate the pace to bring about, in the shortest possible time, the birth of a single group capable of fully leveraging the joint development of the respective international activities.

'Chrysler is undergoing an extraordinary industrial and financial turnaround and Fiat is ready to take control, in order to bring even greater stability and strength to the relationship in the interests of both.

'The transaction announced today, together with the expected achievement of a further 5% interest before year end, will enable us to bring to fruition the vision upon which the alliance was founded: the creation of an efficient and competitive global automaker, possessing advanced technologies and the determination to establish itself as a leader in the sector.'