Fasten your seat belts; it's going to be a wild ride, at least for the next 60 days.

It's official, President Obama has just announced that Chrysler now has in place a formal alliance with Fiat, who together with the US Treasury, will name a new board of directors. This board will name a new chairman who will announce a new CEO as current CEO Bob Nardelli will step down once Chrysler emerges from bankruptcy in 60 days or less. While some observers believe that it's close to impossible for Chrysler to restructure in two months, it seems that the Presidential Task Force on Automobiles (PTFOA) is confident that it can.

Here are the important points in President Obama's noon time speech.

• The PTFOA has been planning for this eventuality for the past 30 days.
• A senior Obama official stated bankruptcy was not the preferred option.
• Bankruptcy jurisdiction will be in a New York Federal court.
• Necessary steps have been taken by Chrysler.
• The US Treasury is to provide $3.5 billion in debtor-in-possession financing.
• The US Treasury is to provide $4.7 billion upon emergence from Chapter 11.
• The Fiat-Chrysler partnership is official.
• Fiat has already agreed to transfer technology.
• Taxpayers will be repaid before Fiat can increase its initial ownership stake.
• Daimler gave up its stake and will be contributing to pension plan obligations.
• Fiat has agreed to build engines and cars here in North America.
• Canada is also contributing to Chrysler's restructuring.
• Investment firms and hedge funds demanded twice the return of other bondholders.
• The PTFOA approves of Chrysler using the bankruptcy process to clear is financial obligations with the investment funds and hedge funds.
• The process will be quick and efficient and will not disrupt Chrysler's near-term operations.
• This agreement has the full support of the US Government.
• In the background, the US Treasury will shore up financing; Chrysler Financial disappears, and GMAC will finance Chrysler dealer and consumer sales.
• The agreement is intended to boost demand for autos, creating incentives for purchasing fuel-efficient, low-emission vehicles.
• CEO Bob Nardelli will exit Chrysler after it completes Chapter 11, anticipated in 30-60 days.

In his closing comments President Obama said that "...this was a better outcome than I anticipated 30 days ago."

In an interview with Maria Bartalomo on CNBC, Chrysler CEO Bob Nardelli stated that a new board of directors will be formed with six members to be named by the US Government and three by Fiat. Together these nine will select a chairman and a CEO.

On the product front, Nardelli said the Fiat 500 can be adapted quickly to the US market. He also stated that Jeep, specifically, will benefit from the Fiat alliance and have a better opportunity to be exported to markets outside North America.

Later today, Automotive Traveler will publish an updated product plan based on our analysis of Chrysler and Fiat platforms and how they will be launched in Chrysler's dealerships.

My commentary? First, the Chrysler agreement sets the stage for negotiations between General Motors and its stakeholders, making a General Motors bankruptcy inevitable. Second, stripped of its crushing debt, Chrysler-Fiat (or Fiat-Chrysler) now has a fighting chance to be successful, and by 2012 will be able to effectively compete in North America against all comers.