More and more, alliances and flexible business models look like the way forward in the global automotive industry. DaimlerChrysler AG said Tuesday it has allied with Italy's Fiat SpA to supply its Misubishi Fuso truck group with 80,000 light-duty diesel engines starting in 2009. The two companies are also investigating further potential business opportunities in other markets, including Southeast Asia. Sergio Marchionne, CEO of Fiat, praised the continuing partnership: "Our ability to partner with DaimlerChrysler is confirmation that the decision to carve out our powertrain activities as a separate sector two years ago was the right one." In late-afternoon trading Tuesday, DaimlerChrysler shares were near a 52-week high of $92.89 at $92.39 — a number the firm hasn't hovered around in eight years.

Also of note, reports Tuesday stated that the Federal Trade Commission cleared Cerberus Capital Management LP's $7.4 billion purchase of 80.1% of Chrysler's U.S. automotive operations.

See the alliance press release here

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