Fiat and Chrysler announced on Tuesday they signed an agreement for a strategic alliance in which Italy's car maker will have a 35 percent stake in Chrysler.

Fiat would not invest in cash but would provide the troubled U.S. carmaker to access to its products, engines and transmissions and platforms, the companies said in a statement today.

The deal which won't involve cash, is a key component of plans to secure Chrysler's future, the company said in a statement.

Chrysler's is under a restructuring plan. It received $1.5 billion in bailout funds last week from the U.S. government.

Fiat doesn't sell cars in the U.S. but the firm has been seeking to enter the market since before the crisis reached the auto sector.

Daimler AG Chrysler