A tie-up with Fiat Auto SpA portends a B-car glut for Chrysler LLC, or at least a steady stream of sub-C vehicles. Due diligence work is under way to finalize a non-binding agreement that promises Fiat a 35% stake in Chrysler. The deal is expected to be wrapped up by April, Chrysler Chairman and CEO Bob Nardelli says in an open letter to the auto maker’s stakeholders. In exchange, Chrysler would receive access to key vehicle architectures, such as the next-generation platforms that ...

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