Fiat’s bid for Chrysler has been given court approval which should allow the US manufacturer to exit Chapter 11 bankruptcy protection soon.

Fiat will control 20% of Chrysler which it will acquire for free under the deal, 68% will be owned by Chrysler’s own union and the US and Canadian government will share a 12% stake.

Both governments have also approved an $8bn (£4.9bn) in loans for Chrysler.