Chrysler and Fiat say they have finalised a global alliance, forming a new Chrysler Group which will begin operations immediately.
The move completes a quick restructuring of the troubled number three US car maker in a plan orchestrated and backed financially by US President Barack Obama's administration and the Canadian government.
Late last night, the US Supreme Court lifted the last legal obstacles, affirming the plan approved by a US bankruptcy judge following Chrysler's April 30 bankruptcy filing.
The nine-member Supreme Court reversed a freeze - introduced by Justice Ruth Bader Ginsberg the previous day - which gave judges time to weigh complaints from Chrysler investors who argued they would be short-changed and their rights' trampled by the Fiat deal.
The court said the disgruntled investors - a group of Indiana pension funds - had failed to show 'that the circumstances justify' the stay placed on a lower court's approval of the deal.
The latest ruling was also watched closely as a possible precedent for bankruptcy proceedings against General Motors which the US government has also bailed out and ushered toward bankruptcy to allow a quick restructuring.
The US Justice Department had urged the Supreme Court to allow the deal, arguing that because Chrysler is not currently manufacturing cars it continues to lose $100m each day of bankruptcy.
