Ford Motor Company, General Motors Co., Fiat Chrysler Automobiles NV, Ford Motor Co., Volkswagen AG and others announced Wednesday that they had reached an agreement to buy Chrysler’s and General Electric’s Jeep, Dodge, Dodge Ram and Jeep Grand Cherokee models for a combined $2,3 trillion.
The deal, which has been in the works for weeks, follows a deal between Fiat Chrysler and the U.S. government to purchase the Chrysler brand in 2011.
The agreement was announced by Ford Chairman Bill Ford in a statement.
“We have a long history of building great vehicles and a strong alliance with General Motors,” he said.
“Together, we will bring a new level of quality, innovation and affordability to our customers.”GM Chief Executive Sergio Marchionne told a news conference that the deal would create a “world-class auto company” that would offer “a sustainable path to profitability.”
Chrysler Chief Executive John Hinckley echoed that sentiment in a conference call with analysts.
The bailout is expected to save the automakers from a $7 billion deficit next year.
Chrysler and GM have both said that they will keep working on the bailout and that it will take at least five years for it to be complete.