"The agreement is the premise for the new Fiat-Chrysler group to further consolidate its position in Europe and internationally, putting the factories, know how and Italian technology at the center of its growth strategies," Industry minister Flavio Zanonato said in a statement.

Fiat has said it plans to build Jeeps and a new line of Alfa Romeos in Italy for export to markets in Asia, Latin America and the United States to offset flagging demand in crisis-hit Italy and to conserve jobs.

(Reporting by Stephen Jewkes; editing by Agnieszka Flak)